China says it will “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports
The Latest: China vows countermeasures over Trump tariffs as trade war threatens to intensifyBy The Associated PressThe Associated Press
China says it will “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports.
The Commerce Ministry said Tuesday the U.S.‘s imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice.”
Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.
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Indian foreign minister speaks with Rubio about trade agreement
Indian Foreign Minister S. Jaishankar spoke with his U.S. counterpart, Secretary of State Marco Rubio, late Monday to push for an early conclusion of negotiations over a bilateral trade deal.
The call came days after the U.S. slapped a 26% tariff on Indian imports. India wants to seek concessions as part of the trade deal, the first tranche of which is expected by fall.
Brendan Lynch, a U.S. assistant trade representative, visited India last month to discuss the initial contours of the deal. The U.S is pushing India to grant greater market access for agricultural and dairy products, but New Delhi is reluctant since its farm sector employs the bulk of the country’s workforce and is a main source of family income.
Malaysia prime minister says ASEAN will send a delegation to Washington
Malaysian Prime Minister Anwar Ibrahim says his government and others in Southeast Asia will send a delegation to Washington to discuss the tariff situation.
In a keynote speech Tuesday at the Association of Southeast Asian Nations’ Investment Conference in Kuala Lumpur, Anwar said ASEAN leaders would try to build a consensus and present a united response to Trump’s tariffs.
“We do not believe in megaphone diplomacy,” Anwar said. “As part of our soft diplomacy of quiet engagement, we will be dispatching together with our colleagues in ASEAN our officials in Washington to begin the process of dialogue.”
Indonesia markets plunge after holiday break
Indonesia’s stock market plunged 9.2% in early trading on Tuesday, as markets in the Southeast Asian country reopened after an extended Eid holiday break.
Its currency, the rupiah, also sank to a record low, hitting 16,846 against the U.S. dollar.
The Indonesia Stock Exchange halted trading for 30 minutes following the steep decline. When it resumed, shares recovered slightly but remained down nearly 8%.
Hong Kong leader calls tariffs ‘bullying’ and ‘ruthless behavior’
Hong Kong leader John Lee has described the latest U.S. tariffs as “bullying,” saying the “ruthless behavior” has damaged global and multilateral trade and brought great risks and uncertainties to the world.
At a news conference on Tuesday, Lee pledged to take several steps to address the tariffs. He said the city would seize more opportunities in China’s development, sign more free trade agreements with other economies, and continue to push for Hong Kong’s accession to the 15-nation Regional Comprehensive Economic Partnership.
He also vowed to advance international financial cooperation, attract foreign companies and capital to Hong Kong, and support Hong Kong enterprises to cope with the tariff impacts.
New Zealand prime minister criticizes tariffs as a ‘shift away from agreed rules’
New Zealand Prime Minister Christopher Luxon has delivered stronger criticism of the U.S. tariffs, decrying what he says is a “shift away from agreed rules” of trade and warning of the risk of “backsliding into a global trade war.”
“A trade war is in nobody’s interests,” Luxon told reporters in Wellington on Tuesday. “It will slow global growth, hurt jobs and reduce the amount of money we have in our wallets.”
He said New Zealand, which is set to receive the 10% baseline tariff rate on goods exported to the U.S., would not impose retaliatory tariffs on the U.S.
The U.S. in January overtook Australia to become New Zealand’s second-largest export partner, behind China, with New Zealand exports largely made up of meat, dairy, wine and agricultural machinery.
Asian markets open higher after volatile session a day earlier
Asian markets opened higher on Tuesday, with Japan’s Nikkei 225 benchmark shooting up more than 6% after it fell nearly 8% a day earlier.
The rebound followed a wild day on Wall Street as U.S. stocks careened after Trump threatened to crank his double-digit tariffs higher.
Hong Kong also recovered some lost ground, but not anything close to its 13.2% dive on Monday that gave the Hang Seng its worst day since 1997 during the Asian financial crisis. The Hang Seng gained 1.7% to 20,163.97 on Tuesday morning.
The Shanghai Composite index jumped 0.8% to 3,121.72, South Korea’s Kospi gained 1.6% to 2,364.22, and the S&P/ASX 200 also was up 1.6%, at 7,462.60.
Japan’s prime minister meets with Cabinet after call with Trump
Japanese Prime Minister Shigeru Ishiba met with his Cabinet on Tuesday to discuss how to respond to the U.S. tariffs, after he spoke by phone late Monday with Trump.
Ishiba has appointed Ryosei Akazawa, the economy revitalization minister, as Japan’s trade negotiator with the U.S., Chief Cabinet Secretary Yoshimasa Hayashi said Tuesday. The appointment was based on an agreement between Ishiba and Trump, Hayashi added.
Japan’s prime minister also dispatched senior officials from the foreign and trade ministries to Washington to follow up on his conversation with Trump.
Ishiba is considering traveling to Washington for direct talks with Trump at an appropriate time, Hayashi said.
At Tuesday’s Cabinet meeting, Ishiba instructed his ministers to fully examine and mitigate the tariffs’ impact on Japanese industries and pursue diplomatic efforts to address them. Ishiba told his ministers the tariffs would be a blow to all industries. He said the auto industry is essential to Japan, while steel and aluminum are also key to its economy.
