Trump's tariffs on $200b of Chinese imports kick in

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China US flag | reuters

China accused the United States of engaging in "trade bullyism" and intimidating other countries to submit to its will through measures such as tariffs, the official Xinhua news agency said Monday, hours after the two sides imposed fresh duties.

Spot gold has fallen over 12 percent since April, which is when the trade conflict between two biggest economies of the world intensified.

China has cancelled trade talks with the United States, according to a Wall Street Journal report, after both sides announced new rounds of tariffs this week. The company said prices for items ranging from food to vehicle seats to luggage to gas grills and Christmas lights, could increase in price by anywhere between 10 percent to 25 percent.

LONDON - European and Asian markets were lower on Monday after China said it won't negotiate with the USA on trade if the Trump administration continues to threaten higher tariffs.

The latest round of USA duties took effect just after midnight Washington time on Monday (midday in Beijing) on a list of products ranging from frozen meat to television components.

"We are going to win it", Trump's Secretary of State Mike Pompeo said of the trade war on "Fox News Sunday".

U.S. companies who import the affected Chinese products will now have to pay an additional 10 percent levy.

This week the USA sanctioned a Chinese military procurement organisation, drawing a sharp protest from Beijing and a decision to postpone planned military talks.

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On the contrary, Bank of America Merrill Lynch has forecasted that the trade war will damage the U.S. economy, resulting in the bullion to reach an average valuation of $1,350 an ounce (currently at $1,198.36 an ounce) in 2019.

Rob Carnell, chief Asia economist at ING, said in a note to clients that in the absence of any incentives Beijing would likely hold off on any further negotiations for now.

"The US-China trade war has no clear end in sight".

The meeting was meant to discuss how to de-escalate the ongoing trade war between the USA and China, which began in July.

"The Trump administration must get its position straight though - what does it want from China, and who is empowered as a negotiator by President Trump to bring the deal home?" The two countries already exchanged tit-for-tat tariffs on $50 billion worth of each other's goods earlier this year.

Walmart, one of the country's largest retailers, wrote in a letter earlier this month to U.S. Trade Representative Robert Lighthizer that the new tariffs could result in higher consumer prices at its stores.

Instead, it has warned of "qualitative" measures to retaliate. Some analysts say there is also a risk that China could allow its currency to weaken again to cushion the blow to its exporters.

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