BEIJING/ WASHINGTON/PARIS: China refused to bow to what it called “blackmail” from the United States as a global trade war ignited by President Donald Trump’s sweeping tariffs showed little sign of abating on Tuesday, even as battered stock markets steadied.
Beijing’s rebuke came after Trump threatened to ratchet up tariffs on US imports from the world’s No. 2 economy to more than 100% on Wednesday in response to China’s decision to match the “reciprocal” duties Trump announced last week.
“The US side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature,” China’s commerce ministry said.
“If the US insists on having its way, China will fight to the end.”
Chinese manufacturers of goods from tableware to flooring are warning about profits, scrambling to plan new overseas plants and haggling with customers over prices as they reel from the tariff news.
The European Union has proposed counter-tariffs of its own to Trump’s onslaught that has swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession.
Stock markets found a firmer footing on Tuesday after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course.
European shares bounced off 14-month lows in early trading after four straight sessions of heavy selling, while global oil prices rebounded following a hefty sell-off.
Japan’s Nikkei index closed 6% higher on Tuesday, rebounding from a 1-1/2-year low hit in the previous session, after Trump and Japanese Prime Minister Shigeru Ishiba agreed to open trade talks.
Chinese blue chips climbed 1%, clawing back some of the more than 7% slide on Monday. Hong Kong’s Hang Seng Index rose after suffering the worst day since 1997 due to what the trading hub’s leader called “ruthless” tariffs.
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