Shares of U.S. exporters tumble as China retaliates on tariffs

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The news comes after China announced tariffs worth US$50 billion on a series of U.S. products including soybeans, whiskey and cars as a response to retaliatory tariffs from the USA in an escalating dispute over China's technology programme and other trade issues.

Canada's soybean producers say China's expanded list of tariffs to be applied on USA products will cause global disruptions and uncertainty.

Stocks remain lower on Wall Street amid an escalating trade dispute between the US and China but have pared some of their sharp early losses.

Chinese tariffs on US -made planes are not certain, and the proposal only covers planes within a certain weight range.

The Chinese announcement came a day after the White House unveiled plans for tariffs on $50 billion in Chinese imports across 1,300 categories, with 25 percent levies on Chinese goods ranging from electronics, aerospace and machinery to phones, shoes and furniture.

A list the US issued Tuesday of products subject to tariff hikes included aerospace, telecoms and machinery, striking at high-tech industries seen by China's leaders as the key to its economic future.

The plan, which was announced Wednesday, would see Beijing slap 25 percent levies on a range of US goods worth about $50 billion.

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"We urge the United States and China to return to negotiations and produce an agreement that serves the interests of the world's two largest economies".

A Finance Ministry statement said that authorities are watching how the USA implements its proposed trade actions...

The president's bid to slow China's technological advancement could escalate into a trade war, and end up disadvantaging American businesses in the process.

China said it would immediately challenge the US move in the World Trade Organization.

"It must be said, we have been forced into taking this action", a deputy commerce minister, Wang Shouwen, said at a news conference.

Global stock markets, fearful of a trade war between the world's two economic superpowers, were shaken by the salvos between China and the United States but have since regained some lost ground.

China hit back within hours with its own threatened duties on US imports including soybeans, planes, cars, whiskey and chemicals. Online retailer Amazon gave up $26.17, or 1.8 percent, to $1,365.88.

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China's state-run media says the probe will "poison" the relationship between the two countries, while the Chinese government later slams the Trump administration's "unilateralism and protectionism".

While Washington targeted products that benefit from Chinese industrial policy, including its "Made in China 2025" initiative to replace advanced technology imports with domestic products in strategic industries such as advanced IT and robotics, Beijing's appears aimed at inflicting political damage. Foreign companies complain that will limit or outright block their access to those industries. Shares of companies with strong ties to the U.S. that escaped tariffs such as Samsonite International SA and Li & Fung Ltd rebounded on Wednesday. But by late morning, Wall Street thought the tariffs were mostly bluster.

The list got an initial scrub to remove products identified as likely to cause disruptions to the US economy and those that needed to be excluded for legal reasons, with remaining products ranked based on impact to consumers.

"Just about every major ICT product was exempted", one US industry source said of the USA list.

A Reuters analysis that compared listed products with 2017 Census Bureau import data showed $3.9 billion in flat-panel television imports, and $1.4 billion in vehicle imports from China.

"Many have further concluded that it is imperative to demoralize the Trump administration at all costs and make it suffer for its erroneous policy toward China". US wine is popular in China, especially bottles from California, which has a certain cultural cachet in the country. "Taking into account transit trade and service trade, the real gap is only a third of the figure released by the USA government". Economists say this response was measured since it does not affect the main Chinese imports from the US.

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