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Wall Street set to open lower after U.S. threatens more China tariffs

Reuters 

By Amy Caren Daniel

(Reuters) - U.S. stocks were set to open lower on Wednesday, halting a four-day run of gains after the threatened to impose tariffs on an additional $200 billion worth of Chinese goods, dampening hopes of a compromise on trade.

U.S. officials on Tuesday issued a list of thousands of Chinese imports that the wants to target with new tariffs, including hundreds of food products, as well as tobacco, chemicals, coal, and aluminum.

China's commerce ministry said it was "shocked" and would complain to the World Trade Organisation, but did not immediately say how it would retaliate.

"Unfortunately the markets haven't come to grips with the current levels of trade policies and tariffs," said Art Hogan, at in New York

"Concerns over trade and trade wars are really having an adverse effect, less so on the U.S. markets than the international markets, but it is certainly taking a bite."

At 8:46 a.m. ET, Dow were down 187 points, or 0.75 percent. were down 16.75 points, or 0.6 percent and were down 50.25 points, or 0.69 percent.

Global stocks were under pressure overnight, with Chinese markets taking the biggest hit. The Shanghai Composite index dropped 1.8 percent and China's blue-chip CSI300 index 1.7 percent.

There is a two-month period of public comment on the latest proposed list before the tariffs get imposed. has said he may ultimately target more than $500 billion worth of Chinese goods - roughly the total amount of U.S. imports from last year.

Among premarket decliners, Boeing, the single largest U.S. exporter to China, and fell around 1.5 percent each, while dropped 2 percent.

Industrials and companies, as well as chipmakers have been the worst hit since Trump first threatened tariffs in early March as they are largely reliant on for businesses.

Intel, Broadcom, Micron Technology, and were down between 0.8 percent and 2 percent.

The escalating trade war sparked a broad sell-off, including in "FAANG" shares, which are generally immune to trade-related

Facebook, Amazon, Apple, and were all down between 0.4 percent and 0.9 percent.

U.S.-listed shares of Chinese companies also tumbled, with giant down 1.5 percent, off 1.6 percent and 1.6 percent.

Also weighing on the sentiment was the two-day NATO summit in where Trump wants Europeans to pay more for their own defense.

Hogan said the meeting had already started on a "sour note".

TripAdvisor's shares rose 3.2 percent after upgraded the stock to "overweight" rating.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 11 2018. 18:49 IST
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