Canada retaliates, puts tariffs on $161 billion of US products
Bloomberg
The Canadian government announced a sweeping package of counter-tariffs against US-made products after Donald Trump confirmed his administration will go ahead with levies against Canada and Mexico on Tuesday.
“Canada will not let this unjustified decision go unanswered,” Prime Minister Justin Trudeau said.
The retaliation plan is the same as the one he announced in February after Trump signed his executive order for broad tariffs.
The first stage is 25 per cent tariffs on about $C30 billion ($22.9 billion) worth of goods from US exporters, and will go into effect at 12.01am (4.01pm AEDT) unless the US drops its tariffs, Trudeau said.
A second round of tariffs at the same rate will be placed on $C125 billion of products in three weeks – including cars, trucks, steel and aluminum.
Chinese stocks fall as tariff reality outweighs stimulus hopes
Bloomberg
Chinese stocks dropped after Donald Trump signed an order to increase tariffs on the country, testing investors’ nerves before a crucial meeting in Beijing this week.
A gauge of Chinese shares listed in Hong Kong declined as much as 2.5 per cent, while the onshore benchmark CSI 300 Index fell as much as 0.8 per cent. BYD was among the biggest decliners, after a bumper share sale, but selling pressure hit almost every sector.
The tariff announcement came ahead of the China’s National People’s Congress meeting, which starts on Wednesday.
Investors are on the lookout for more stimulus that could boost a recent stock market rally. But the hope of stimulus has collided against the reality of US tariffs – and for now, at least, investors are in retreat.
