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China stocks tumble to 6-week low, roiled by trade war fears

China stocks tumble to 6-week low, roiled by trade war fears

Stock markets were hit by fears that Trump's tariff plan could trigger a trade war.

Kennedy said a deal to cut China's $375 billion USA goods trade surplus by $100 billion is far easier to achieve with additional purchases of US soybeans, beef, liquefied natural gas, Boeing (BA.N) aircraft and other equipment.

President Donald Trump is imposing new tariffs of 25 percent on imported steel and 10 percent on aluminum.

China was widely expected to pursue reciprocal tariffs after Trump unveiled tariffs on approximately $50 billion worth of Chinese goods.

While it remains unclear about the scope and scale of Trump's tariff plan on China, "certainly it's very clear that tariffs will increase the cost of goods for Americans, both American consumers and American companies", Henry Levine, senior advisor at leading US consulting firm Albright Stonebridge Group, told Xinhua. The U.S. Trade Representative has 15 days to finalize a list of items.

"As we've seen for years, China's theft of American intellectual property and their use of unfair trade practices represent clear threats to manufacturers' competitiveness and the jobs of American manufacturing workers". "Do not underestimate China's determination and capacity to safeguard its legitimate interests, and the price that the U.S. will have to pay for its arbitrary and reckless behaviour", she said.

There were no defenders of China on Capitol Hill, but members of the two congressional trade committees, Senate Finance and House Ways and Means, urged the Trump administration take a steady and studied approach in trying to punish China.

One of the most contentious parts of the law involves measures that allow China to conduct security reviews of technology products and services that could affect national security.

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USA exports of fruits, frozen juices and nuts to China amounted to $669 million a year ago, and it was the top supplier of apples, cherries, walnuts and almonds, with much of the produce coming from growers in California, Florida and MI.

"If a trade war were initiated by the U.S., China would fight to the end to defend its own legitimate interests with all necessary measures", the Chinese Embassy in Washington warned in a statement following the president's order.

Markets will be watching to see whether the fracas escalates to include bigger-ticket items like massive U.S. sales of aircraft and soybeans to China, Zhang said.

Analysts say having direct oversight of the media will help the party hammer home its message domestically and also work to improve its image internationally.

"China is not afraid of and will not recoil from a trade war". The European Union and other trade partners dismiss that as an excuse and say the USA merely wants to give its companies a boost.

He has repeatedly said as both candidate and president that other countries have not believed that they have gotten away with taking advantage of the United States for so long.

Earlier this month, Trump signed a proclamation calling for tariffs on steel and aluminium, a decision which the American Chemistry Council (ACC) said put $133bn of chemical industry investment at risk.