Trade War Fears Send US Stocks Down Again

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It seems that China will match whatever move the United States administration makes and is unlikely to buckle under any pressure. China wasted no time saying it would punch back with $50 billion in tariffs on 106 products it imports from America.

And if a trade war between the US and China were to escalate, more jobs could be on the line, said Allen.

On Wednesday, China unveiled a list of 106 U.S. goods - from soybeans and whiskey to frozen beef and aircraft - targeted for tariffs, in a swift retaliatory move only hours after the Trump administration proposed duties on some 1,300 Chinese industrial, technology, transport and medical products. President Donald Trump has said that China must shave $100 billion off that goods deficit.

"Concerning the USA statement, China will not only listen to the words but also watch the deeds", the spokesman added.

If China "were to try and respond in kind, there would not be enough U.S. goods to tariff", said Alex Wolf, an emerging markets economist at fund manager Aberdeen Standard Investments.

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Constitutional lawyer Pierre de Vos tweeted that a court had already ruled that the decision to prosecute Zuma was valid. Allegations of bribery over the deal dogged the governments of both Zuma and one of his predecessors, Thabo Mbeki.

In light of China's "unfair retaliation" against earlier USA trade actions, Mr Trump upped the ante on Thursday by ordering United States officials to identify extra tariffs, escalating a high stakes tit-for-tat confrontation with potentially damaging consequences for the world's two biggest economies.

USA citizens will pay plenty for it. Soybean prices fell to their lowest level in two years on Wednesday after China's list came out, Bloomberg reported. Almost all clothing sold in the US - 97 percent - is imported, and China is the top import partner by far, responsible for 41 percent of USA imports.

This could mostly fizzle out, as both the USA and Chinese tariffs are still only in the proposal stage.

Brazilian economy sectors whose products were affected by higher taxes imposed by China on American goods are still calculating their gains. "This is just a proposed idea", Trump economic adviser Larry Kudlow told reporters Friday morning.

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