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Louis Kuijs

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BooksAdopting the Euro in Central Europe: Challenges of the Next Step in European Integration
Exchange Rates in Central Europe: a Blessing Or a Curse?
Finland: Selected Issues
Monetary Policy Transmission Mechanisms and Inflation in Slovakia
Real Convergence to EU Income Levels: Central Europe from 1990 to the Long Term
The Impact of Ethnic Heterogeneity on the Quantity and Quality of Public Spending
Determinants of Inflation, Exchange Rate, and Output in Nigeria
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Louis Kuijs Life story


Asian stocks drop as US-China trade war escalates

Feb 16,2020 5:39 am

Asian stock markets tumbled on Monday after a sharp escalation in the US-China trade war rattled investors.

On Friday, US President Donald Trump announced tariff hikes on effectively all Chinese imports to the US.

It came after Beijing said it would impose fresh duties and raise tariffs on US imports into China.

In China, Hong Kong 's Hang Seng index slid 3. 2% while the Shanghai Composite gave up 1. 3%.

Japan's benchmark Nikkei 225 index dropped 2. 3%. The Chinese yuan weakened to a fresh 11-year low against the US dollar. The onshore yuan was around 7. 15 per dollar in morning Asian trade.

Sharp falls in the yuan earlier this month prompted, adding to tensions between the Two Countries .

"The trade war between the US and China has escalated dramatically," Louis Kuijs , head of Asia Economics at Oxford Economics said.

"This tit-for-tat escalation shows how unlikely a trade deal and de-escalation have become. "

How has the trade war escalated?

On Friday, the from 25% to 30%. Those hikes will be introduced from 1 October.

The US also said fresh tariffs on an additional $300bn of Chinese goods, announced earlier this month, will now be at a rate of 15% instead of 10%. The First batch of those tariffs will be introduced in September.

In a tweet, Mr Trump said to move their operations back to the US. It is unclear how he could force firms to comply.

The moves came after China delivered its latest trade war strike, announcing plans to hit $75bn worth of US goods with new tariffs and hikes to existing duties.

How did we get here?

The World 's two largest economies have been Locked In a bruising trade battle for The Past year that has seen tariffs imposed on billions of dollars worth of one another's goods.

Mr Trump has long accused China of unfair trading practices and intellectual property theft. In China, there is a perception that the US is trying to curb its Rise .



trump tariffs, trade war, stock markets

Source of news: bbc.com

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