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China's economy shows further weakness as retail sales struggle

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US targets $300B of Chinese goods for new tariff hikes

"China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing", Mr Trump wrote on Twitter. Shares in smaller Chinese Huawei rival ZTE Corp also tumbled.

American farmers have borne the brunt of Trump's tough trade stances, but energy companies have been pulled into the fights, as well.

The president also acknowledged that US farmers may be impacted by the trade war, saying that the administration would use income from the new levies to support the farmers.

USA agricultural goods have been targeted by China's retaliatory tariffs, and American farmers, a key political constituency for Trump, are anxious. This could have a great effect on companies that manufacture their laptops, smartphones, tablets or other electronics in China, such as Apple and Microsoft, as well as one company based overseas that ships to the U.S.to sell their products.

Stocks, which took a beating on Monday after Trump late on Friday threatened a new round of tariffs on about $300 billion worth of remaining imports from China, gained strength after Trump's comments, with the tech-driven Nasdaq up 1.47% in midday trade.

U.S. President Donald Trump, in a series of tweets posted on the morning of May 14, said the United States economy was well-positioned to succeed despite the trade dispute with China.

But trading partners and close allies in Europe, North America and Asia are also in the US administration's sights.

Earlier Tuesday, the Chinese government said the two countries would keep talking about their trade dispute.

Beijing is running out of US imports to penalize due to their lopsided trade balance.

The three countries have not yet ratified the new deal.

Freeland told reporters she had discussed the "Section 232" tariffs on Canada with Lighthizer but declined to say whether the two countries were close to a deal. But she told reporters later that ratification of the agreement would be hard as long as the tariffs remain in place. "China is our fourth largest importer of liquefied natural gas, and its new tariffs put this critical industry at risk".

But after China's response, he said he had "not made a decision" on whether to go ahead with those additional levies.

In addition, Grassley said there are strict limits on how USA officials could simply donate food to poor countries.

Tensions between the United States and China intensified this week after China announced on Monday that it would raise tariffs on $60bn worth of U.S. goods from June 1 onward.

China retaliated on Monday with higher tariffs on a revised list of $60 billion worth of US products. If more tariffs are introduced to cover all Chinese goods, that will cost 0.6 percentage point in the 12 months after, according to the median estimates of those polled.

China then warned in state media that the nation that now has the world's second-largest economy will overtake the United States financially.

Another escalation could disrupt global supply lines and damage a slowing world economy.

The government said Wednesday that to date it has paid out more than $8.5 billion to American farmers to offset their loss of sales to China and other trading partners because of foreign tariffs imposed by Beijing and other governments.

On May 15, China's National Bureau of Statistics published data related to industrial production and retail sales for April.

Data out of the United States showed US retail sales fell in April as households cut back on purchases of motor vehicles and other goods, pointing to a slowdown in economic growth after a boost from exports and inventories in the first quarter. The U.S. imports include a broad range of agricultural products.

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