Fears of a trade war heightened on Thursday as the Trump administration slapped trade sanctions on China, including restrictions on investment and tariffs on $60bn worth of products. The Trump administration argues that years of negotiations have failed to produce results. US stock markets reacted negatively, with the Dow closing more than 700 points down on fears of a US trade war Caterpillar, 3M and Boeing – all with significant exposure to China – were among the biggest fallers. Fears of a trade war between the two biggest economies in the world were also reflected in the bond market, with US 10-year treasury bonds posting their biggest one-day drop in yields since September. The US also “refuses to export what China wants”, Hua said, possibly referring to restrictions on technology and military sales.

Source: The Guardian March 22, 2018 13:11 UTC