Stocks Fall After China Announces Retaliatory Tariffs

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The Nasdaq was up 0.66%, the S&P 500 up 0.4% and the Dow Jones Industrials up 0.3%.

"China will fight to the finish", said a foreign ministry spokesman, Geng Shuang.

Trump tweeted that China was "paying tariffs to the United States of America", that "there is no reason for the US consumer to pay the tariffs", and that "the tariffs can be completely avoided if you buy from a non-tariffed country, or you buy the product inside the USA (the best idea)". "We've helped them before, and we'll do it again if we have to and if the numbers show that out".

President Trump had struck a genial tone in tweets on Friday, calling the talks "candid and constructive". In October, Ford's chief executive Jim Hackett said higher steel prices would cost Ford an estimated $1 billion, even though the automaker acquires most of its steel and aluminum from US companies.

An additional $325 billion of Chinese goods are in line for tariffs if Trump decides to impose them. This improves their profitability and allows them to invest in their businesses, such as by hiring more staff, building new factories and so on.

Fear the United States and China are spiralling into a fiercer, more protracted trade dispute that could derail the global economy has rattled investors in recent weeks. China responded by upping tariffs on $60 billion of US goods. The Trump administration has imposed tariffs on Chinese goods before, and in each case, China was quick to impose tariffs on USA products. Chinese negotiators were in Washington on Thursday and Friday for talks.

The time before then will be "highly volatile" for financial markets, said Macquarie Bank analysts in a report.

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President Emmanuel Macron's office said a USA woman and a South Korean woman were also freed in the covert operation. Parly also thanked local authorities and the "precious support of our American allies in conducting this operation".

On Monday, China announced a new round of tariffs in retaliation for American tariffs that were put in place last week. For instance, last week at the White House, he said: "Our country can take in $120 billion a year in tariffs. For us, this is a real 'people's war'". Ultimately, they're taxes that consumers pay.

Klein uses the example of a $300 Chinese-made television he recently bought at Costco to explain the impact the tariffs have on American consumers. "They are not victims of China's 'unfair competition.'", it said. "I would say low-income families are being hurt most by tariffs, while also pointing out farmers have been financially strained as well".

"The American worker is getting killed by this", former Vice President Joe Biden said Monday on WMUR, a New Hampshire radio station.

The damage to the booming American economy is bound to be far less than estimated, however. "You've got to do what you've got to do".

The United States is pressing China to change its policies on protections for intellectual property, as well as massive subsidies for state-owned firms, and to reduce the yawning trade deficit. That means the burden of the tariffs would fall on those who are now unemployed, or on other companies that have lost business because their customers no longer have the money to buy their products.

Fox News reporter Chris Wallace took National Economic Council director Larry Kudlow to task on Sunday after President Donald Trump falsely claimed that his Chinese tariffs would be paid for "mostly by China". And that could grow.

According to the Congressional Budget Office, Trump's China tariffs-even before the latest hike in May-equate to a 0.1 percent drop in the annual rate of U.S. GDP growth rate on average until 2029.