CHINA VOWS FIGHT
Trump nearly doubled duties on Chinese imports, which had been set at 54 per cent last week, in response to counter-tariffs that Beijing announced last week. China has vowed to fight what it views as blackmail.
Top Chinese brokerages have pledged to work together to help steady domestic share prices in response to the tariff-induced turmoil.
Central banks in New Zealand and India cut rates on Wednesday in what could presage a broader move by policymakers to try and cushion the tariff hit to their economies.
Other nations are racing to protect key industries from the duties, with South Korea announcing a raft of emergency support measures for the auto sector, including tax cuts and subsidies.
Some economists have warned that ultimately US consumers are likely to bear the brunt of the trade war, facing higher prices on everything from sneakers to wine.
The full effects of Wednesday’s tariffs may not be felt for some time, as any goods already in transit as of midnight will be exempt from the new levies as long as they arrive in the US by May 27.
Nearly three-quarters of Americans expect the prices of everyday items to rise in the next six months, a new Reuters-Ipsos poll found.
Source: CNA
