The Chinese stock markets fell sharply on Monday. The threat from US President Donald Trump to introduce new import tariffs on Chinese goods caused unrest in the markets.
Trump put extra pressure on China on Sunday with two messages on Twitter.
He stated: “For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”
With that threat, Trump wants to increase the pressure on Beijing in the negotiations that have been going on for months. However, China has doubts about further participation in the trade negotiations, which would be continued this week in Washington.
The stock market in Shanghai lost 5.8 percent in value in the meantime, and the Hang Seng index dropped 3.3 percent in Hong Kong. The All Ordinaries in Sydney lost 0.9 percent. In South Korea the stock exchange was closed due to a national holiday. In Tokyo too, the financial markets were still closed due to the long holiday period in the context of the arrival of the new Japanese emperor, trading on the Japanese stock market on Tuesday.