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Chinese Stocks Plunge 10 Per Cent In One Day As Trump Pushes Ahead With Tariff Threat
U.S. President Donald Trump (L) and Chinese President Xi Jinping at their joint press conference. (Kyodo News via Getty Images)
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.
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