Published: Sat, August 10, 2019
Finance | By Kristine Clayton

Chip Stocks Slump On No Trade Deal Comments From President

Chip Stocks Slump On No Trade Deal Comments From President

Trump said that the USA will eliminate any attachments with Chinese multinational technology company Huawei on Friday as well. A report that Washington was delaying a decision about allowing some trade between US companies and Huawei again spooked Asia.

Companies such as Xilinx Inc. and Micron have publicly said they have applied for licenses and called on the U.S.to allow them to resume doing business with Huawei.

"Chinese private buyers are not going to be making any USA purchases with a government ban in place", said Dan Basse, president of AgResource Co.

"The administration continues to tie the easing of restrictions on Huawei to China's commitments on agricultural purchases, and the accelerating skirmish makes escalation more likely in the near-term rather than a return to constructive dialogue".

Shipments to Europe and Southeast Asia-China's top two trading partners-also bounced back, while the decline in exports to the USA eased after President Trump and Chinese President Xi Jinping struck a conciliatory tone on trade at the Group of 20 summit in Japan in June.

Last week, .as President Trump announced he would impose further tariffs on another 300-billion dollars of Chinese goods from September 1st, . Beijing retaliated with its own penalties and ordered importers to find non-U.S. suppliers.

"We're not ready to make a deal but we'll see what happens", Trump said.

Financial markets have plunged following Trump's announcement, and fell precipitously after China's retaliation. The S&P 500 was down 87.31 points, or 3.7 per cent, and shares of S&P 500 technology companies, which are highly exposed to the China market, dropped 4.1 per cent. China customs is due to report its July rare earth export data on Thursday.

"We don't have much choice but to wait for the trade tensions to subside, " said Mr. Chen, whose firm produces pet supplies that are set to be hit with higher tariffs from September 1.

9 said he was not ready to strike a trade deal with Beijing, criticizing the Chinese regime for manipulating its currency and reneging on its pledges.

However, optimism was dented by the Bloomberg report, which added to concerns that deterioration in U.S.

President Donald Trump said he won't devalue the dollar amid an escalating trade war with China that has unleashed tit-for-tat actions on trade and currency policy.

China bought 60,000 tonnes of wheat, 50,000 tonnes of sorghum and 1,350 tonnes of pork in the week ended August 1, weekly U.S. Department of Agriculture (USDA) data showed.

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