Greenback Falls After US Hits China With Tariffs
The Office of the United States Trade Representative issued a list of Chinese goods that will be imposed with tariffs in the Section 301 actions. The tariffs sum up around 25% on Chinese imports worth some 50 billion dollars. The list of goods includes approximately 1300 tariff lines, mostly technological and industrial products (televisions, medical devices, batters, aircraft parts). Stock market didn’t show any notable reaction. Japan Nikkei and Hong Kong HSI are almost unchanged. China SSE Composite index rose 0.8%. The yellow metal is trading near 1335. The greenback declined after the news.
As a response to US announcement, the Chinese Embassy in the US published a statement. China claimed the action “strongly condemns and firmly opposes the unfounded Section 301 investigation and the proposed list of products and tariff increases based on the investigation”, adding that: “unilateralistic and protectionist action has gravely violated fundamental principles and values of the WTO”. China’s government promised to take “corresponding measures of equal scale and strength against U.S. products in accordance with Chinese law”. Chinese Ministry of Commerce claimed it will “immediately bring relevant U.S. practice to the dispute settlement body of the WTO, and is ready to take counter measures on U.S. products with the same intensity and scale that will be published in the coming days.”
Australia retail sales rose 0.6% mom in February. Australia building approvals reduced -6.2% mom. British BRC shop price index fell -1.0% yoy in March. Chinese Caixin PMI services declined to 52.3. Today, Britain will announce construction PMI, Eurozone will feature Consumer Price Index flash, Eurozone will publish jobless rate and the US will present ADP private employment, ISM services and factory orders.