Chinese shares extend weekly losses as USA tariffs kick in

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"The United States will be opening fire on the whole world and also opening fire on itself", said China's Commerce Ministry spokesperson on Thursday, reiterating that Beijing will fight back.

The government said previously it would hit more than 500 USA export items - including cars and major agricultural goods such as soybeans and meat - worth the same as the Chinese products targeted by the United States.

Some economists warn that an all-out trade war would put the brakes on the US economy by eroding business confidence, interrupting supply chains and increasing costs of imports to USA companies and consumers. China still has outstanding sales of about 771,000 tons of USA soybeans in the 2017-2018 marketing year and 1.39 million tons in the following season, USDA records show. "We can expect job losses and a decline in investor and consumer confidence", longtime Beijing-based attorney James Zimmerman tells NPR's Rob Schmitz.

The big question is how far the hostilities between Washington and Beijing will go.

As the day dawned across the USA on Friday, a new economic reality dawned with it: The tariffs long threatened against billions of dollars in Chinese goods took effect just at midnight ET while many Americans were sleeping - but Beijing was ready immediately with a wake-up call of its own. Others say they are turning their focus to Chinese consumers.

"There should be no doubting Beijing's resolve", the newspaper said.

On Thursday, Trump said higher tariffs on an additional $16 billion in Chinese goods were set to take effect in two weeks.

"More than 70,000 jobs depend on the Port of Oakland".

That would bring the total of targeted Chinese goods to potentially $550 billion, which is more than the $506 billion in goods that China actually shipped to the United States a year ago.

China central banker says currency slide under observation
Japan's Nikkei average also recovered from a 0.9 percent fall and was last off 0.1 percent to a near three-month closing low. S&P500 and Nasdaq indicated a firmer session after Wall Street ended higher on Tuesday for the third day in a row.

Trump's confrontational outlook applies to other trading partners as well as China, said Tai Hui, chief strategist for JP Morgan Asset Management, in a report.

The taxes target 818 kinds of Chinese products in industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles, according to a USTR list released previously.

Ahead of the tariffs, Chinese state media published a series of editorials criticising the U.S. and emphasising the country's readiness for a trade war.

USA carmaker Ford Motor Co (F.N) said on Thursday it has no plans to hike retail prices of its imported Ford and Lincoln models in China, despite the steep additional tariffs on imported US vehicles set to come into play on Friday. Trump's minions were not impressed either with New Delhi's projections that it would be buying billions worth of American airplanes, energy, and armaments in the coming decade, which would cumulatively wipe out the current $ 23 billion trade deficit. -Chinese tensions, Zarit said.

Cohen says while China does export more to the US, the United States could lose in other ways.

USA crude rose 1.07 percent to $73.72 per barrel and Brent was last at $77.11, down 0.36 percent on the day.

He described the United States actions "a violation of world trade rules" and accused Donald Trump of "initiating the largest-scale trade war in economic history".

But reaching a deal that's palatable to both sides will be tough. He has also expressed growing concern about intellectual property rights in high-tech industries, centered around the "Made in China 2025" policy, which aims to turn the country into a technological superpower.

Analysts say China is unlikely to budge on those plans, which it sees as crucial for developing its huge economy.

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