Asian Markets Feel Devastating Effect of US – China Trade War
Asian shares decreased to a 2-1/2 week low on Monday. This fall in value was caused by the steps of U.S. President Donald Trump. On Friday he raised trade tensions by introducing tariffs on Chinese imports. Beijing promised to immediately respond in the same way.
The looming trade war of a global scale made oil prices fell even deeper. The dollar retreated from near 3-week highs against the safe-haven yen. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS decreased 0.5 percent. It reached its lowest level since May 31.
The threats of growing protectionism overshadowed stronger-than-expected export data and that made Japan's Nikkei .N255 sink 0.8 percent.
As it was informed earlier, Trump announced hefty tariffs on $50 billion of Chinese imports on Friday. The US unveiled a list of more than 800 strategically important imports from China. All of them will be subject to a 25 percent tariff starting on July 6, including cars.
China promised to respond with similar tariffs and called all previous trade deals with Trump “invalid.” According to the Xinhua news agency, China would impose 25 % tariffs on 659 U.S. products, ranging from soybeans and autos to seafood.