Trump Revives Beijing Trade tensions.

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Reference to Reuters. President Donald Trump has revived the trade war between the U.S. and China by notifying that he is imposing a new set of tariffs which will be effective on November1.

The U.S. is going to put a 100 percent tariff on the Chinese export, covering various industries against the Chinese increased export ban on important minerals. The ruling brings to a sharp conclusion the wary peace between the two biggest economies of the world and shakes the global markets and increases uncertainty,

Trump made the announcement at a White House press conference after China tightened its restrictions on rare earth exports, which are vital for technology, defense, and clean energy production. Trump charged Beijing with engaging in unfriendly trade practices and he threatened to respond with financial force. The relocation also covers new U.S. export restrictions on all critical software that may severely impact the technological and AI sectors of China.

Meeting with Xi in Doubt

Trump also indicated that he might not even have a meeting with the Chinese President Xi Jinping in South Korea later this month. He explained there was no cause of the meeting after the recent moves of Beijing. Even though he made it clear that the meeting was not canceled officially yet, Washington insiders believe that increasing tension would not allow any diplomatic progress,

Beijing has not even verified the meeting further fueling the speculation that the trade confrontation may go till the end of the year. The white house refused to comment on particular countermeasures which are still in the pipeline though there is an indication that aircraft parts and electronics will be restricted in the future.

The Scorp U.S. reacts to Rare Earths Move by China.
China controls more than 90 percent of the world processed rare earths or metals critical to smartphone, electric car, military and semiconductors. Beijing has increased its list of control this week and added five major components and new refining technologies to export control. These new rules will now affect foreign producers utilizing Chinese materials, and this has raised global supply chain issues,

Trump described the new policy of China as a hostile order claiming that the U.S. has enough resources to retaliate. We have two to every thing they have monopolized, he said. Economists, in their turn, cautioned that the further development of tit-for-tat trade actions may impose additional strain on markets and cooperation on an international level.

Market Reacts: Shares Crash and Gold Soars.

The new trade war shook the markets of the world. The S&P 500 index fell by over 2% and this is the biggest decrease in the index since April. Investors flooded into the safe-havens such as gold and U.S Treasury bonds as the dollar plummeted in the turbulence. Technology stocks were the worst hit, which indicated a high dependence of the tech industry on the importance of the Chinese imports and software exports.

Craig Singleton, who is an expert in foreign policies, said that the trade tensions could lead to the termination of the tariff truce. He quoted Washington perceiving the move of China as a betrayal of the recent gains whereas also Beijing viewed the U.S reactions as pressure tactics to entice concessions before the upcoming APEC summit.

Increasing Stakes To APEC Summit.

Both the countries seem to be probing the other to its limits ahead of the meeting of the Asia-Pacific Economic Cooperation (APEC) that is to take place in South Korea at the end of October. Analysts are of the opinion that Trump has been being hardline to have leverage before any possible negotiations. In the meantime, the recent moves of China indicate its desire to dictate in terms of the strategic production factors,

Scott Kennedy of the Center of Strategic and International Studies commented that both the leaders would feel that “increasing pressure” would force the other to give in-or will show that no easy solution is available. The result, he remarked, may define the further stage of international trade relations between Washington and Beijing.

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