Workers protest dilution of labour laws, Trump imposes fresh tariffs and more

Trump: U.S. Will Hit $300 Billion Worth Of Chinese Goods With 10% Tariff

Analysts see China now as being less likely to try to match Trump's tariffs dollar-for-dollar, but instead hunker down.

Having spent most of the session on track for their best day since June, all three major USA stock indices took sudden U-turns as investors quickly turned into sellers after the tweet.

Now playing: Watch this: AutoComplete: Chinese tariffs on USA vehicles going away, .

Stock markets across Europe fell after the surprise decision by US President Donald Trump to impose new tariffs on a further $300bn of Chinese imports.

"Until a deal is reached, we'll be taxing the Hell out of China", Trump told a rally of supporters in Cincinnati, Ohio. And I would also add in economic terms we believe, and we've looked at these numbers again and again, that economic burdens have fallen most heavily on China.

Previous negotiations collapsed in May, when USA officials accused China of backing away from earlier commitments.

USA business groups in China expressed disquiet over the latest round of United States tariffs.

Trade relations with China have swung between progress and disaster, appearing to collapse in May only to be revived two months later after a meeting in Japan between Trump and Xi Jinping, his Chinese counterpart.

"Rather than giving in to the USA demand, we expect China will firm up its bottom lines and formally use the strategy of waiting it out", wrote analysts Li-Gang Liu, Xiaowen Jin and Xiangrong Yu. Indeed, the situation only seems to be getting more heated as talks between the two global superpowers continue.

Beijing warned of retaliation on Friday and said it would not be bullied by Trump.

Mr Trump announced the tariff plan on Twitter on Thursday, while taking aim at China for not honouring promises to buy more United States agricultural products at this week's negotiations in Shanghai. Plans for that were announced after Washington imposed crippling restrictions in May on sales of US technology to Chinese tech giant Huawei Technologies Ltd. Soybean futures opened lower on Thursday as traders shrugged off the purchase because of the small volume involved, and losses accelerated after Trump's tweets.

"Nobody wins in a trade war, and raising tariffs further on American businesses and consumers will only result in slower economic growth, more farm bankruptcies, fewer jobs, and higher prices", Gold said."It's time for the administration to come up with a real strategy, put a stop to harmful tariffs and finally deliver the trade deal Americans were promised".

In contrast, the risk sensitive Australian dollar dropped to a seven-month low of $0.6795 while the yuan slid to its weakest since November 2018, softening by over 0.7% to 6.95 per dollar in onshore trade and fell to 6.9563 in the offshore market.

The threat to tax practically all USA imports from China marks the biggest escalation so far taken by the Trump administration and brings a surprise end to a truce that had only been in place since the president met Xi Jinping, his Chinese counterpart, in Osaka at the end of June.

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