The following is an excerpt from ANA SWANSON | April 2, 2018 | Nytimes.com |
WASHINGTON — President Trump’s promise to take tough action against China’s unfair economic practices was one of his most popular campaign ideas. But as the United States prepares stiff trade measures and China retaliates, stock markets have plummeted and some of America’s biggest companies are pushing back.
Industry giants like General Electric and Goldman Sachs, as well as agricultural companies, have lodged objections with the White House, saying that tariffs on both sides of the Pacific and limitations on investments will cut off American companies from the world’s most lucrative and rapidly growing market.
China imposed tariffs on Monday on more than 100 American products, including pork, fruit, recycled aluminum and steel pipes. Fears of an incipient trade war between the world’s two largest economies sent the Standard & Poor’s 500-stock index tumbling 2.23 percent and pushed markets into correction territory. Technology stocks bore the brunt of the slump, as a recent spate of bad news about tech companies like Facebook, Tesla and Amazon spooked investors. Asian and European markets fell more modestly in early Tuesday trading.
China’s action could be an escalation in a much broader trade dispute. The announcement was a direct response to the Trump administration’s tariffs on imports of steel and aluminum, which were directed at a range of countries, including China.
Since then, the White House has announced another trade measure targeted at China that would place tariffs on at least $50 billion worth of products imported to the United States and would restrict investment flows between the two economic giants. This week, the Trump administration is expected to announce a list of Chinese imports subject to tariffs, which could include high-tech products like semiconductors as well as cheap electronics and other goods that many Americans buy.
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