💾 Archived View for gmi.noulin.net › mobileNews › 6576.gmi captured on 2023-09-08 at 17:24:33. Gemini links have been rewritten to link to archived content
⬅️ Previous capture (2023-01-29)
-=-=-=-=-=-=-
2018-06-26 04:56:11
US stock markets tumbled on Monday led by technology companies as concerns over
escalating trade tensions between the US and China hit investors.
The Nasdaq ended more than 2% lower, while the Dow Jones Industrial Average and
the S&P 500 dropped more than 1.3%.
The US is set to announce new rules to curb Chinese investment in critical US
technology.
The measures are part of a broader dispute over intellectual property.
The US claims that China's government unfairly supports Chinese companies in
certain strategic industries.
After talks over the issue broke down this spring, the US and China said they
would both apply new tariffs to billions of dollars worth of goods from each
other's country on 6 July.
The White House is also expected to unveil new rules later this week that would
restrict Chinese investment in US technology such as robotics and aerospace.
Bloomberg reported that the White House is planning to take a hard line,
against the advice of US Treasury Secretary Steven Mnuchin.
Meanwhile, the Wall Street Journal reported that measures would likely target
investments in the US by any company with at least 25% Chinese ownership, as
well as exports of technology by US firms.
Intel, which derived almost a quarter of its sales from China last year, was
one of the biggest losers on the stock market with its share price falling by
more than 3%.
Apple, which also relies on China for production and significant sales, saw its
share price decline by about 1.5%.
US Treasury Secretary Steven Mnuchin denied both reports.
He said the restrictions will not be specific to China but would apply "to all
countries that are trying to steal our technology".
The comments put pressure on markets, but they climbed back from earlier lows
after White House trade adviser Peter Navarro later told CNBC that there was
"absolutely nothing on the table" with respect to other countries.
He said markets have misunderstood the president's plans.
Most economists warn that tariffs, including ones the US has imposed on foreign
steel and aluminium, are disrupting supply chains and risk discouraging
investment and hiring.
Those costs are starting to sink in.
Harley-Davidson shares fell almost 6% after the firm said it would absorb the
higher costs of new tariffs on motorcycles imposed by the EU, adding millions
to its expenses.
It said it would shift some production out of the US to try to avoid the costs.
Bill Adams, a senior economist at PNC Bank, said: "The US and Chinese
government have strong incentives to de-escalate trade frictions, but the new
strategy of retaliating against retaliation makes a trade war a less farfetched
risk to the outlook."