China sanctioned US units of a South Korean shipping company on Tuesday, and Beijing has promised retaliatory measures on the industry in the latest tit-for-tat move over trade and tariffs.
The sanctions target five US units of Hanwha Ocean Co., helping fuel a global slump in equities as traders grow concerned over the escalating tensions between the US and China.
US Treasury Secretary Scott Bessent slammed China saying: “This is a sign of how weak their economy is, and they want to pull everybody else down with them.”
President Trump later Tuesday said on Truth Social that he believes China is “purposefully not buying our Soybeans” and considers it an “Economically Hostile Act.” The president added that his administration is considering curtailing trade with the country as “retribution,” such as by blocking cooking oil imports.
The latest escalation came after Wall Street had breathed a sigh of relief on Monday as Trump hinted at a possible deescalation.
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” he wrote on Truth Social.
US-China tensions ratcheted up in earnest last week, when Trump said the US would impose an additional 100% tariff on Chinese goods starting on Nov. 1 over Beijing’s plan to impose new exort controls on rare earth minerals.
In addition to the mineral curbs, China has also slapped new port fees on US ships and launched an antitrust investigation into US-based Qualcomm (QCOM). Beijing has also halted purchases of US soybeans, scrambling business plans for US farmers.
In corporate news, automaker Stellantis (STLA) has unveiled a $13 billion corporate investment in the US over the next four years and will create 5,000 jobs in a bid to counteract the impact of tariffs. Apple (AAPL) CEO Tim Cook said he will boost investment in China and further step up cooperation there during a meeting with Beijing’s industry minister on Wednesday.
These latest comments from Apple come despite threats from President Trump to slap tariffs on the iPhone makers foreign-made products.
Read more: What Trump’s tariffs mean for the economy and your wallet
US tariffs on China of nearly 145% in some cases are on hold until Nov. 10 while the two countries negotiate a larger trade deal. Chinese tariffs on US goods ballooned to 125% before the pause.
Here’s what else to know on Trump’s tariffs:
Americans are set to pay more than half of President Trump’s tariffs as companies raise prices, according to Goldman Sachs. Americans will likely bear the brunt of 55% of tariff costs by the end of the year, with US companies taking on 22%.
Early next month, the US Supreme Court is set to hear a challenge to Trump’s most sweeping tariffs — the “reciprocal” country-by-country duties that you can see in the graphic above. A ruling against the tariffs — which would be in line with lower-court decisions — could have significant ramifications for Trump’s tariff strategy.
New duties on kitchen cabinets and vanities took effect Oct. 1.
Tariffs on timber and certain wood products (like furniture) took effect Oct. 14.
LIVE 26 updates
The latest trade tensions between the US and China has rattled markets. Here’s a list of all the assets affected by the latest tariff turmoil.
Currencies: The dollar (DX=F) fluctuated on Tuesday following China’s response to the US on tariffs. Risk sentiment fell as investors moved towards traditional safe havens such as the yen and Swiss franc.
Crypto: Cryptocurrencies bitcoin (BTC-USD) and ether (ETH-USD) continued to fall on Tuesday. Bitcoin dropped almost 3% to $111,950, while ether slumped 4%, falling below $4,000. The crypto market shed $150 billion amid the bubbling in US-China trade tensions.
Oil: Brent crude futures (BZ=F) fell 2% to $61.93 and US West Texas Intermediate crude (CL=F) also dropped 2% to $58.15 at 08:58 GMT, reversing earlier gains amid uncertainty around US-China trade relations.
