Chinese Stocks Plunge 10 Per Cent In One Day As Trump Pushes Ahead With Tariff Threat

Chinese stocks took a battering during Tuesday trading as US President Donald Trump fired the latest salvo in the bitter ongoing trade confrontation with China.

Late on Monday, Trump released a statement directing his trade representative Robert Lighthizer to prepare a list of imported Chinese items, valued at $200 billion, that will be hit with an additional tariff of 10 per cent. In case of retaliatory moved by China, Trump has threatened to increase the number to $400 billion.

On Friday, Beijing had announced a 25 percent tariff on $34 billion of US goods in response to Washington slapping a 25 percent tariff on up to $50 billion of Chinese products. Analyst fear that the latest back-and-forth measures signal the commencement of full-fledged trade war.

According to Bloomberg, the Shanghai Composite Index slid below 3,000, a level that has been previously breached only during market crashes in 2015 and 2016.

More than 1000 Chinese stocks took a heavy battering and fell by 10 per cent
Trump’s tariff moved have dealt a body blow to Chinese stocks which are yet to recover from a $5 trillion collapse that began almost exactly three years ago.

The Shanghai Composite is among the world’s worst-performing benchmarks this year, a Bloomberg report said.