China weighs whether to retaliate over Trump's 'stupid' tariff hikes [Business News Network (BNN) Energy & Resources (Canada)]
Citigroup, Inc. (C)
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Source: Business News Network
China weighs whether to retaliate over Trump's 'stupid' tariff hikes BEIJING -- China had no immediate reaction Friday to U.S. President Donald Trump's vow to impose high tariffs on steel and aluminum, which he followed up by insisting that trade wars "are good, and easy to win." Chinese leaders have threatened in the past to retaliate if Trump raises trade barriers, but now need to weigh whether to back up those threats with action and risk jeopardizing U.S. market access for smartphones and other exports that matter more to their economy than metals. "China will definitely respond. It doesn't want to be seen as weak. But it will be relatively restrained," said economist Louis Kuijs of Oxford Economics. "They don't want to be seen as a party that is wrecking the international trading system." Global stock markets fell sharply Friday over worries of a possible trade war following Trump's announcement that he will levy tariffs of 25 per cent on steel and 10 per cent on aluminum. Early
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