Investing.com - Asian equities extended their losses in afternoon trade on Tuesday, with China’s Shanghai Composite and the Shenzhen Component down more than 3% after U.S. President Donald Trump threatens to impose new tariffs on more Chinese goods.
In a statement on Monday, Trump said he had asked U.S. representatives to identify Chinese goods that would be subject to a new 10% tariffs. The move would be in retaliation for China’s decision to raise tariffs on $50 billion in U.S. goods, which was in itself in response to new U.S. tariffs.
"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong," said Trump.
He added that "after the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced.”
In response, China’s Ministry of Commerce also issued a statement on Tuesday indicating that Beijing will fight back with “qualitative” and “quantitative” measures if the additional list of tariffs on Chinese goods becomes reality.
“Such a practice of extreme pressure and blackmailing deviates from the consensus reached by both sides on multiple occasions, and is a disappointment for the international community,” noted the ministry’s statement.
“The United States has initiated a trade war and violated market regulations and is harming the interests of not just the people of China and the U.S., but of the world,” the ministry said.
On Friday, Trump said he was pushing ahead with a 25% tariff on $50 billion worth of Chinese products.
Hong Kong’s Hang Seng Index also fell 2.5%. Telecoms firm ZTE Corp (HK:0763) plunged 25.5% on Tuesday after the U.S. Senate’s passage of a defence bill casted doubt over whether the company could resume business with its U.S. suppliers.
Xiaomi Corp also raised some eyebrows on Tuesday after the company said it is postponing its China depository receipts (CDR) offering until after it completes its listing in Hong Kong.
Xiaomi did not say when it would restart its CDR application process or why it was postponing the mainland offering.
Singapore’s May home sales received some focus as data showed sales jumped to the highest since August. Developers sold 1,121 units last month, according to a statement from the Urban Redevelopment Authority on Monday, compared to the revised 732 units in April.
Elsewhere, Japan’s Nikkei and South Korea’s KOSPI were down 1.4% and 0.9% respectively in afternoon trade. Australia’s S&P/ASX 200 climbed 0.2%.