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Tech & Science ASX sinks as Donald Trump threatens to impose tariffs on Brazil and Argentina metal imports

06:20  03 december  2019
06:20  03 december  2019 Source:   msn.com

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WASHINGTON — President Trump said on Monday that he would impose tariffs on steel and aluminum from Brazil and Argentina , a move that would shatter previous agreements with those countries and widen a global trade war that the president had appeared ready to scale back.

US President Donald Trump on Monday attacked Brazil and Argentina over their respective currency depreciations, saying he will Latin America’s third-largest economy, Argentina , is currently facing a deepening economic crisis which has forced the government to impose currency controls in a bid to

Donald Trump© Getty Donald Trump The Australian share market's losses have accelerated in afternoon trade after US President Donald Trump decided to impose tariffs on metal imports from Brazil and Argentina.

By 1:25pm (AEDT), the ASX 200 had fallen by a steep 138 points, or 2 per cent, to 6,724.

Despite the heavy sell-off, the local market has essentially drifted back to where it was a week ago as the market has been trading near record highs.

Every sector is trading sharply lower with technology, consumer staples and utilities being the worst performers — down between 2.2 and 3 per cent.

Among the weakest stocks are Virgin Money UK (-5.4 per cent), WiseTech Global (-4.9 per cent) and Costa Group (-4.4 per cent).

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Dec.02 -- President Donald Trump is reinstating tariffs on steel and aluminum from Argentina and Brazil , nations he criticized for cheapening their

Trump to hit Brazil and Argentina with steel and aluminium tariffs . Asia-Pacific stocks stumbled on Tuesday, tracking Wall Street lower after US President Donald Trump reimposed tariffs on some metal imports from Brazil and Argentina and as his administration eyed duties on EU products.

Only 12 stocks in the benchmark index are trading higher including Bluescope Steel (+0.5 per cent) and Pilbara Minerals (+0.9 per cent).

Meanwhile, the Australian dollar jumped to 68.2 US cents, up about half a cent since early-Monday.

This was due to some upbeat economic data from Beijing showing a surprise rebound in Chinese manufacturing activity.

The Reserve Bank board will meet today but most economists are not expecting an interest rate cut at 2:30pm (AEDT).

US widens its trade war

Mr Trump opened up a new front in his trade war by tweeting that he would reinstate tariffs, effective immediately, on all steel and aluminium shipped into the United States by the two South American nations.

Brazil and Argentina were exempted from steel tariffs (25 per cent) and aluminium tariffs (10 per cent) last year when Mr Trump was attempting to avoid a trade war with those nations.

Trump just slapped tariffs on Brazil and Argentina to try and dig himself out of a problem he created

  Trump just slapped tariffs on Brazil and Argentina to try and dig himself out of a problem he created President Trump announced on Monday that he's imposing new steel and aluminium tariffs on Brazil and Argentina. In a tweet, Trump blamed both nations for devaluing their currencies, and hurting American farmers in the process.

" Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers. U.S. President Donald Trump said on Monday that he will immediately restore tariffs on U.S. steel and aluminum imports from Brazil and Argentina .

U.S. President Donald Trump on Monday said he would immediately restore tariffs on U.S. steel and aluminum imports from Brazil and Argentina , prompting at least one counterpart to vow talks with the Republican president. Emerging market stocks and the highly sensitive Mexican peso slid to session

However, he accused them, on Monday (local time), of "presiding over a massive devaluation of their currencies" and harming US farmers in the process.

He also urged the Federal Reserve to cut interest rates further "so that countries, of which there are many, no longer take advantage of our strong [US] dollar by further devaluing their currencies".

Australia was also exempted from these metal tariffs last year.

But market analysts believe there is no guarantee that the US will continue to honour that arrangement.

"Given Brazil was seen as a close friend of Trump and even they could not be exempt from tariffs, there is a notion that every country regardless of what they do could have tariffs imposed, which creates a lot of uncertainty of businesses," said NAB's director of economics Tapas Strickland.

This surprise tariff announcement came as investors paid close attention to the main trade war — between the US and China.

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Earlier on Monday, Trump said he will impose tariffs on U.S. steel and aluminum imports from Brazil and Argentina , catching the two South American countries off Bolsonaro strode to victory last year as the “ Trump of the Tropics,” threatening to slash China’s growing footprint in his country’s economy.

The US will imposed tariffs on steel and aluminum imports from Brazil and Argentina , President Donald Trump said in a tweet Monday. " Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers.

Both economic superpowers are aiming to sign a so-called "phase one" deal, in an attempt to de-escalate their long drawn out trade dispute.

While Washington and Beijing are working towards a partial trade deal, Mr Trump said that US legislation backing protesters in Hong Kong did not make trade negotiations with China easier.

The law "doesn't make it better, but we'll see what happens", he told reporters, without giving any indication on when the agreement would be finalised.

"We are coming off the market high … any negative news is going to cause investors to take profits," said Peter Cardillo, chief market economist at Spartan Capital Securities.

Heavy market selling

European trading losses were the most severe as Germany's DAX and Paris' CAC indices sank by 2 per cent each, while London's FTSE lost 0.8 per cent.

On Wall Street, the Dow Jones index dropped 268 points (1 per cent) to close at 27,783.

The benchmark S&P 500 fell 0.8 per cent, its steepest loss in almost two months (since October 8).

The tech-heavy Nasdaq lost 1.1 per cent — dragged down by Facebook, Amazon and Google's parent company. Alphabet, which all fell by at least 1 per cent.

US markets were also weighed down by weak November manufacturing data, which revealed the US factory sector contracted for its fourth straight month.

The Institute for Supply Management (ISM) said its index of national factory activity dropped 0.2 points to a reading of 48.1 last month.

A reading below 50 indicates contraction in the manufacturing sector, which accounts for 11 per cent of the US economy.

"It is all about the macro news today and that is basically overshadowing the good news on Black Friday and Cyber Monday," Mr Cardillo said.

"The fact that the manufacturing sector is still in recession obviously also rekindles trade worries."

Amazon lawsuit blames Trump for loss of $US10 billion contract, Wall Street falls .
Markets are set for a shaky session amid a looming US-China tariff deadline and a multi-billion-dollar lawsuit against the US Government by Amazon Web Services.The major US indices gave up early gains as the deadline for the US to impose its planned tariffs on Chinese imports looms.

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