China promises to retaliate if United States imposes more tariffs


Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267 billion (roughly Rs. 19.3 billion) worth of Chinese goods.

China has either imposed or proposed tariffs on $110 billion of U.S. goods, representing most of its American imports, though crude oil and large aircraft are still not targeted for penalties.

'It would not be profitable to build the Focus Active in the USA given an expected annual sales volume of fewer than 50,000 units and its competitive segment, ' Ford said. Hong Kong's Hang Seng index slipped 0.8 percent.

On 31 August, citing Trump's new tariffs, Ford said it was dropping plans to ship the Focus Active from China to America.

In August, China unveiled a proposed list of retaliatory tariffs on $60 billion of USA goods ranging from liquefied natural gas to some types of aircraft, should Washington activate the tariffs on its $200 billion list. Kristin Dziczek of the Center for Automotive Research said that Ford can make Focuses "in many other plants around the world, so if they made a decision to continue to sell a Focus variant in the USA market, there are several options other than building it in the United States".

On top of that, strong numbers on Friday had bolstered bets on a higher dollar on expectations the Federal Reserve will keep raising USA interest rates.

The tariffs, ranging from 5% to 25%, would apply to 5,207 products, and USA actions will determine whether China adopts the additional duties, Beijing said at the time.

Trump previously has claimed that Apple is building new plants in the United States, but the iPhone maker has not announced any such plans.

Chinese shares were battered with the blue-chip index off 1.4 percent.

Tension has also persisted over limits on U.S. firms' access to Chinese markets, intellectual property protection, technology transfers and investment.

"People have concerns about the stock market".

In early European trade London, Paris and Frankfurt all fell 0.1 percent.

The Australian dollar, a proxy for Chinese growth because of the large amount of metals it sells there, hovered near its lowest in 2 1/2 years and was last at $0.7115.

In commodities, oil prices were firmer after three straight days of losses, with USA crude futures up 44 cents at $68.20 per barrel.

Spot gold was mostly unchanged at US$1,194.84.