Markets Right Now: Stocks rise as trade war fears ease

Equities declined in Europe and Asia amid concern over the escalating protectionist standoff between China and the U.S

They've invested a cumulative $256 billion there since 1990 (versus the $140 billion China has invested in the United States), according to the Rhodium Group research firm and the National Committee on U.S. "The trade relationship between the United States and China must be much more equitable".

The battle between Trump and Beijing has kicked into high gear over the past week.

But the more the target list expands, the more likely consumers will be hurt - one reason the administration lowered the tariffs on the next $200 billion in imports to 10 percent from the 25 percent on the original $50 billion. China's Commerce Ministry criticized the White House action as blackmail and said Beijing was ready to retaliate. "We have no choice".

Two decades ago, China's economy was largely fuelled by exports, but it has made progress in rebalancing towards domestic investment and consumption since the global financial crisis erupted last decade - limiting the damage trade tariffs could inflict on Beijing.

"The fundamental reality is that talk is cheap", Navarro told reporters on a conference call, again accusing China of "predatory" trade policies.

The move followed tariffs applied last week on $50 billion in Chinese imports to the US.

The tariffs are "creating a whole new set of uncertainties on top of what's already there", Daniel Yergin, vice chairman of consultancy IHS Markit, said on Tuesday as he arrived in Vienna to attend this week's OPEC's International Seminar. "These actions cause the USA to lose credibility in the world's eyes, and harm the interests of U.S. and Chinese people and companies".

Spooked by worsening tensions over trade between the world's two largest economies, investors are selling stocks and commodities and buying safer assets.

"Our phone lines are open; they have always been open", Mr Navaro, who has taken a hard-line stance against Beijing, said. "This is a problem that's long overdue in being tackled", Pompeo said in Detroit.

The planned new wave of tariffs would have to go through a similar process of public consultation and comment as the earlier ones before taking effect.

"Just ask yourself: Would China have allowed America to do to it what China has done to America?" he said later. They include electric cars, whiskey and soybeans - a politically and economically vital export of America's heartland, where Trump enjoys support.

"Let's hope that Americans wake up in time to understand this reality that they, not the Chinese, will be the ones hurt the most by their president's insistence that they should pay high prices for imports, including those that are used by many United States manufacturers", Veronique de Rugy, a senior research fellow at George Mason University's Mercatus Center, said Tuesday.

Developments regarding the trade dispute between the USA and China may impact trading on Wednesday, although traders are also likely to keep an eye on a report on existing home sales in May. This causes costs to increase for businesses that use those goods as parts for their final product.

"Dairy", Trump said. "Dairy, 275 per cent tariff". The logistics company's shares were the biggest weight on the Dow Transports, which fell 1.7 per cent. FedEx is scheduled to issue its quarterly report after the bell on Tuesday. The President threatened to impose even more tariffs if China retaliates further.

TOKYO/SYDNEY, June 18 (Reuters) - Asian shares fell to a 2-1/2 week low on Monday after U.S. President Donald Trump cranked up trade tensions by going ahead with tariffs on Chinese imports, prompting Beijing to immediately respond in kind. He cited two reasons it posed an even larger indirect problem for United States firms. Many US trading partners reacted by raising their own tariffs, which contributed to shutting down global trade.

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