China will counterpunch USA with $34 billion in tariffs

The European Union Mexico and Canada have all the hit U.S. with billions in retaliatory tariffs

The European Union Mexico and Canada have all the hit U.S. with billions in retaliatory tariffs

U.S. Treasury yields finished lower on Tuesday as fears of an escalating trade dispute between the United States and its trading partners in China, Canada, Mexico and the European Union continued to weigh on economic sentiment.

At a meeting of the World Trade Organization, major USA trade partners have warned about the consequences of a possible U-S decision to impose additional tariffs on vehicle imports.

When it comes to trade, for instance, it claims that China adopts "unfair" trade practices that have caused the huge bilateral trade gap, ignoring the fact that the US' trade deficit is a result of the changing global division of labour over the past decades and the low savings rate in the US. "As long as the United States issues a so-called tariff list, China will take necessary measures to firmly protect its legitimate interests", Lu said, without elaborating. Washington is conducting a national security study that could lead to tariffs on imported cars and auto parts. The German firm makes Mercedes SUVs in the USA and ships them to China, its biggest market. Imposing tariffs in a world of integrated, multinational supply chains might be self-destructive and would likely pass through to US consumers, according to strategists at Morgan Stanley.

US companies ranging from whiskey distilleries to automakers like Ford and Tesla could be hit if China ramps up retaliatory measures.

Trump has accused China of unfairly acquiring US technology through coercion and theft and limiting market access for USA finance and technology firms - claims that China denies. Of those, 81,000 - worth $2.37 billion - went to China.

By themselves, the tariffs that take effect Friday won't immediately have a dramatic impact on global trade.

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As the world's most powerful economy, the USA plays a vital role in global economic and trade rule-setting and it is always able to find seemingly plausible reasons for its initiative targeting China.

Meanwhile, the number of Chinese tourists crossing the Pacific to the US surged nearly sixfold, from 525,000 in 2009 to more than 3 million in 2016, according to the US Department of Commerce.

Before the U.S. government started to tighten visa policies, many big-spending Chinese had been given 10-year multiple-entry visas. "But we should not understate the view that some sectors could get something out of a U.S". But the European Union remains a close, longtime ally of the US on a range of issues, despite the current tensions with the Trump administration.

Those statements follow the presidents comments about the bloc's treatment of trade deals with the U.S.

Travel and Leisure magazine's report on the alert, meanwhile, noted that China has been warning its citizens about gun violence in the USA for years.

Saudi Arabia has said it is prepared to boost supply to balance the market, but traders are also weighing factors ranging from a disruption to supply from Libya to a fall in USA crude inventories.

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