A red wave swept across Asia trading floors on Wednesday as investors grow increasingly concerned that the China-US trade deal, which appeared all by ready to sign, could fall through.
Donald Trump has said he will raise tariffs on US$ 200bn of Chinese goods because talks on a US-China trade deal are moving “too slowly”. The US president tweeted that tariffs of 10% on certain goods would rise to 25% on Friday, and US$ 325bn of untaxed goods could face 25% duties “shortly”.
The United States administration has formally confirmed it intends to pursue a trade deal with the UK “as soon as it is ready” after leaving the EU. Donald Trump’s trade representative Robert Lighthizer notified Congress of plans to open negotiations with the UK, as well as with the EU and Japan.
China said on Sunday it wouldn’t step up its purchases of United States products if President Donald Trump goes ahead with his threat to tax billions of dollars’ worth of Chinese imports. White House advisers insisted on fundamental changes in ties between the world’s two biggest economic powers.
The trade dispute between the United States and China has benefited Brazil so far but could prove harmful long term as higher grain prices will make the country’s exports less competitive, Brazil’s farm minister said. Brazil is the world's leading poultry exporter.
Australia and Peru have signed a new trade deal that is expected to lead to more local products - including beef, sugar, almonds and dairy - being sold in nation which is a full member of the Pacific Alliance.