China says it will ‘fight to the end’ after Trump threatens additional 50% tariffs – business live
China vows to fight Trump tariffs ‘to the end’
China’s commerce ministry has vowed to fight US tariffs “to the end” after Donald Trump threatened fresh levies of 50% on imports from the world’s second-largest economy.
“The US threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the US’s blackmailing nature,” a ministry spokesperson said on Tuesday.
“China will never accept this,” AFP quoted them as saying.
If the US insists on going its own way, China will fight it to the end.
If the US escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests.
Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
As the trade war escalates, Beijing – Washington’s major economic rival – unveiled its own 34% duties on US goods to come into effect on Thursday.
China’s commerce ministry on Tuesday also reiterated that it sought “dialogue” with the US, and that there were “no winners in a trade war”.
Key events
Robert Tait
A libertarian group backed by US billionaires Leonard Leo and Charles Koch has mounted a legal challenge against Donald Trump’s tariff regime, in a sign of spreading rightwing opposition to a policy that has sent international markets plummeting.
The New Civil Liberties Alliance filed a suit against Trump’s imposition of import tariffs on exports from China, arguing that doing so under the International Emergency Economic Powers Act – which the president has invoked to justify the duties on nearly all countries – is unlawful.
The group’s actions echo support given by four Republican senators last week for a Democratic amendment calling for the reversal of 25% tariffs imposed on Canada.
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China vows to fight Trump tariffs ‘to the end’
China’s commerce ministry has vowed to fight US tariffs “to the end” after Donald Trump threatened fresh levies of 50% on imports from the world’s second-largest economy.
“The US threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the US’s blackmailing nature,” a ministry spokesperson said on Tuesday.
“China will never accept this,” AFP quoted them as saying.
If the US insists on going its own way, China will fight it to the end.
If the US escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests.
Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
As the trade war escalates, Beijing – Washington’s major economic rival – unveiled its own 34% duties on US goods to come into effect on Thursday.
China’s commerce ministry on Tuesday also reiterated that it sought “dialogue” with the US, and that there were “no winners in a trade war”.
Hong Kong shares rise as Shanghai dips
Hong Kong stocks opened 1.66% higher after Monday’s collapse, while Shanghai stocks extended their losses at open amid the increasing US-China trade war.
Taiwan stocks fell 3% in early trade, AFP reports.
South Korea sets 3 June election date
South Korea’s government has approved Tuesday 3 June as the date for a snap presidential election, following the removal from office of Yoon Suk Yeol last week over his declaration of martial law.
The move comes after Yoon’s removal after the country’s constitutional court voted unanimously on Friday to uphold parliament’s decision to impeach him over his ill-fated declaration of martial law in December.
The ruling meant the acting president, Han Duck-soo, would remain in office until the country elected a new leader within 60 days.
China’s central bank said on Tuesday it supported sovereign wealth fund Central Huijin Investment increasing its holdings in stock market index funds.
The People’s Bank of China would provide re-lending support to Central Huijin Investment, a unit of China Investment Corp, when necessary to maintain the smooth operation of the capital market, it added in a statement quoted by Reuters.
On Monday, Huijin intervened to support domestic stocks that had plunged on US tariff woes.
Back now to Asian markets, which opened higher on Tuesday, with Japan’s Nikkei 225 share benchmark up 5.5% after it fell nearly 8% a day earlier.
The Nikkei had jumped to 32,819.08 a half-hour after the market in Tokyo opened.
South Korea’s Kospi gained 2%.
Markets in New Zealand and Australia also were higher.
The rebound followed a wild day on Wall Street as US stocks careened after Donald Trump threatened to ratchet up his double-digit tariffs, as the Associated Press reports.
Asian markets plunged on Monday, with stocks in Hong Kong diving 13.2% for their worst day since 1997, during the Asian financial crisis.
The S&P 500 ended down 0.2% on Monday as battered markets watched to see what Donald Trump would do next in his trade war.
Mark Sweney
With global stock markets reeling from Donald Trump’s announcement of sweeping border taxes, some of the US president’s business allies have been left counting the cost.
The world’s 500 richest people lost a collective $536bn in the first two days of stock market trading after Trump’s “liberation day” announcement last Wednesday. It was the biggest two-day loss of wealth ever recorded by Bloomberg’s billionaires index.
Within that, a coterie of tycoons who have supported Trump or attended his inauguration in January have seen their wealth shrink. Here, we look at the four who have been worst hit by the market turmoil – and one billionaire still riding high this year.
Several Chinese state holding companies have vowed to increase share investment as Beijing steps up efforts to stabilise a plunging stock market.
Tuesday’s announcements by China Chengtong Holdings Group and China Reform Holdings Corp came after Chinese state fund Central Huijin said on Monday it would increase share holdings to foster stability in markets, Reuters reports.
China’s stock benchmark dived 7% on Monday amid investor worries about the risk of a damaging trade war and a global recession.
Washington last week imposed extra tariffs of 34% on China, which then fired back with its own 34% levies on US imports, prompting Donald Trump to threaten an additional 50% tariffs on Chinese goods if Beijing did not retract the countermeasure.
Chengtong said its investment units would increase holdings in stocks and exchange traded funds (ETFs) to safeguard market stability.
“We are firmly optimistic toward the growth prospects of China’s capital markets,” the state investment firm said in a statement, vowing to support high-quality growth of Chinese listed companies.
China Reform Holdings Corp, also known as Guoxin, said in a separate statement that an investment unit would increase holdings in tech companies, state firms and ETFs, tapping a relending scheme for share buybacks. Initial investment will be 80bn yuan ($10.95bn).
Another state holding company, China Electronics Technology Group, said it would boost share buybacks in listed units to bolster investor confidence.
South Korea mulls increasing US imports ahead of minister’s Washington visit
South Korea’s trade minister said the government has been considering packages of measures to increase US imports, as he headed to visit Washington to negotiate over Trump’s tariffs.
Cheong In-kyo said on Tuesday ahead of the trip that it was good news Donald Trump had said the door was open for talks over tariffs with nations other than China, Reuters reports.
“It is difficult to reduce exports, so shouldn’t we then increase [US] imports? In that regard, we have been reviewing many different packages to resolve the trade balance problem,” Cheong said.
He said the government had been internally discussing increasing LNG imports from the US.
In Japan, meanwhile, prime minister Shigeru Ishiba will nominate economy minister Ryosei Akazawa as trade negotiator with the US, FNN television reported on Tuesday.
Ishiba and Trump agreed to open bilateral talks on tariffs during a phone meeting on Monday.
Trump has put Treasury secretary Scott Bessent and US trade representative Jamieson Greer in charge of trade negotiations with Japan, Bessent said on social media.
Nikkei jumps 5% after steep falls
Japan’s benchmark Nikkei 225 index has now risen 5%, news reports are saying.
The jump comes after financial markets across the globe posted a third day of losses on Monday as investors worried that steep trade barriers around the world’s largest consumer market could lead to a recession.
The S&P 500 closed lower after US stocks swung in and out of the red on Monday morning as a report circulated that Donald Trump was going to pause the implementation of his sweeping tariffs for 90 days. But that was quickly dismissed by the White House as “fake news”.
Today’s rise comes after the US president’s new ultimatum to China marked the latest escalation from Washington. Trump has threatened to impose an additional 50% tariff on imports from China on Wednesday unless it rescinds its retaliatory 34% tariff on US imports by Tuesday.
But China said on Monday it would not cave in to pressure and threats.
Nikkei rises on opening
Japan’s Nikkei share average is up 1.9% after the Tokyo stock market’s opening this morning, Reuters is reporting.
Trump rejects EU ‘zero-zero’ tariff proposal
The European Union said on Monday it had offered “zero-for-zero” tariffs to the US weeks before Trump’s tariff announcement and was in negotiations with the administration.
But Donald Trump didn’t appear keen on the offer, telling reporters zero-zero tariffs were not going to happen.
Trump said selling energy to the EU would be a key focus as his administration seeks to eliminate a trade deficit with the bloc.
“The European Union’s been very bad to us,” Trump said, accusing European nations of not buying enough US goods.
They’re going to have to buy their energy from us, because they need it and they’re going to have to buy it from us. They can buy it – we can knock off $350 billion in one week.
Opening summary
Hello and welcome to our coverage of the global stock market response to Donald Trump’s sweeping trade tariffs following the huge falls on Asian markets yesterday.
Extreme volatility plagued global stock markets on Monday, with Wall Street swinging in and out of the red as Trump defied stark warnings that his worldwide trade assault will wreak widespread economic damage, comparing new US tariffs to medicine.
A renewed sell-off began in Asia, before hitting European equities and reaching the US. It was briefly reversed amid hopes of a reprieve, only for Trump to threaten China with more steep tariffs, intensifying pressure on the market.
China said Monday it would not cave in to threats after Trump vowed an additional 50% tariffs on its goods if Beijing did not retract planned countermeasures.
“We have stressed more than once that pressuring or threatening China is not a right way to engage with us,” Liu Pengyu, a spokesperson for Beijing’s embassy in the US, told Agence-France Presse. “China will firmly safeguard its legitimate rights and interests.”
The US president later dampened hopes of a reprieve further when he told reporters in the Oval Office he was “not looking at” pausing tariffs to allow for negotiations.
During a bilateral meeting with Israel’s prime minister, Benjamin Netanyahu, Trump was asked if the tariffs were permanent or open to negotiations. Trump responded: “They can both be true, there can be permanent tariffs and there can be negotiations.”
“There are things we need beyond tariffs, like open borders,” Trump insisted – once again hitting out at China, claiming “China is a closed country” charging too high tariffs. He did confirm the US was talking to Beijing about the tariffs.
It looks set to be another bumpy ride on the markets today. Follow along for the latest news, reaction and analysis.
