BitGou: Friday Morning Briefing: China warns of retaliation after Trump vows new tariffs

Trump Tariff

President Donald Trump vowed to impose a 10% tariff on $300 billion of Chinese imports from Sept. 1, sharply escalating a bruising trade war between the world’s largest economies and jolting financial markets. The announcement extends Trump’s trade tariffs to nearly all of the Chinese goods the United States imports and marks an abrupt end to a temporary truce in a trade row that has hurt world growth and disrupted global supply chains. China said it would not be blackmailed and warned of retaliation. Beijing would not give an inch under pressure from Washington, Chinese Foreign Ministry spokeswoman Hua Chunying said.

Trump’s surprise move on Thursday to impose new tariffs on Chinese imports has thrown the Federal Reserve another curveball that may force the central bank to cut interest rates more than it had hoped was necessary to protect the U.S. economy from trade-policy risks. China’s government and companies in China do not pay U.S. tariffs directly. Tariffs are a tax on imported products and are paid by U.S.-registered firms to U.S. customs when goods enter the United States. Importers often pass the costs of tariffs on to customers - manufacturers and consumers in the United States - by raising their prices. Trump has said bad trade deals with China and others have cost millions of American jobs. Here are some of the costs of Trump’s push to rewrite the terms of global trade, with China and other top trade partners.

World

Thousands of Hong Kong civil servants are planning to rally on Friday night in support of protesters and to urge authorities to rebuild confidence in the government as escalating protests rock the Asian financial hub. As Hong Kong’s political crisis simmers amidst heated protests, China’s People’s Liberation Army in Hong Kong released a video showing footage of “anti-riot” exercises and its top brass warned violence is “absolutely impermissible”.

Saudi Arabia has allowed adult women to travel without permission and granted them more control over family matters, further eroding a heavily criticized male guardianship system at a time of heightened scrutiny over its human rights record. A series of royal decrees published by the official gazette stipulated that a Saudi passport should be issued to any citizen who applies for it and that any person above the age of 21 does not need permission to travel.

Nana Assenso stands at the grave of his uncle, remembering the man he loved but also a past that has haunted his family for generations. His uncle was called Kwame Badu, a name that has been passed on through the family in remembrance of an ancestor with that name who was captured and sold into slavery long, long ago. This month marks 400 years since the first recorded African slaves arrived in North America to work plantations in English colonies.

Six small bomb blasts wounded at least four people in Bangkok, as the Thai capital hosted a Southeast Asian security meeting with top diplomats from the United States, China and other world powers. Prime Minister Prayuth Chan-ocha ordered an investigation into the bombs, a blow to Thailand’s image during the high profile event and barely two weeks after his former military junta transformed into a civilian government.

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After INF treaty's demise, U.S. seeks funds for missile tests https://reut.rs/2KaPHYj via @idreesali114 @phildstewart

6:05 AM - Aug 2, 2019

Business

Taiwan’s Foxconn is exploring the sale of its new $8.8 billion display panel factory in China, people familiar with the matter told Reuters, as demand for the product wanes amid an intensifying U.S.-China trade war. Foxconn, formally known as Hon Hai Precision Industry, is in talks to appoint banks to find a buyer for its liquid crystal display factory that is being built in the southern Chinese city of Guangzhou, said two people with direct knowledge of the matter.

Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said. The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration simulator test.

Apple said it suspended its global program where it analyzed recordings from users interacting with its voice assistant Siri, after some privacy concerns were raised about the program. “While we conduct a thorough review, we are suspending Siri grading globally,” an Apple spokeswoman said in a statement, adding that in a future software update, users will be able to opt out of the program.

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