Asian shares recover from two-month lows as trade war fears ease

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The Office of the US Trade Representative, which is handling the negotiations, said the tariffs were "appropriate both in light of the estimated harm to the US economy and to obtain elimination of China's harmful acts, policies and practices".

In the latest round of tit-for-tat, China, on Wednesday, announced plans to hike tariffs by 25% on 106 imports from the U.S. The Chinese move was in response to a U.S. announcement on Tuesday, of a 25% tariff on 1,333 Chinese imports.

"We don't want a trade war, but we aren't afraid of fighting one". We're going to continue to worry about that, and hopefully come to a resolution on that.

The Trump administration this week announced planned tariffs on $50 billion in Chinese imports; Beijing responded with plans to penalize imports from the the same amount.

The Chinese government announced tariffs on 106 American products that they say will target an estimated $50 billion worth of commerce for USA companies.

"From an worldwide trade perspective, iPhones sold by Apple's Chinese subsidiaries are not counted as imports".

President Donald Trump and China are on the brink of a trade war - and it seems states which overwhelmingly voted for Trump would bear the brunt of the blow.

"It will be a couple months before tariffs on either side would go into effect and be implemented, and we're hopeful that China will do the right thing", White House press secretary Sarah Huckabee Sanders said.

"It will probably be a mixture of the three, of course, but overall I would say we will see a decline", he said.

What is happening to U.S.

As this went to press, neither the US nor China had announced kick-off dates for the harsher round of tariffs.

Hours later, China, the largest consumer of American goods, reciprocated with its own tariffs against 106 USA products, including soybeans, wheat, tobacco, corn, cotton and beef.

USA stocks fell hard on Wednesday but quickly recovered after China issued retaliatory tariffs on US goods, sparking a trade war between the world's biggest superpowers. The last two options could hurt China as much as the U.S., which is why Garcia Herrero thinks they are unlikely to happen.

"This is not a trade war yet". The reading offered yet another bullish sign for investors that the USA economic recovery was still on track.

After the announcement which happened on Wednesday, the Trump officials sorted out the fears of an imminent trade war and making aware of the fact that they plan to impose the tariffs on the $50 billion CHINESE goods. It would be piled on top of other forces that suggest inflationary pressures should build, such as US tax and spending policy and low unemployment, which suggest strong demand, including for imports.

"Look, China created this problem, not president Trump". For example, pork and beef exports will also be hit with tariffs; meat products exported from red states to China were worth over $850 million in 2016.

So far, no tariffs have actually been imposed. "Those are caught up in these proposed tariffs", said Smith.