SYDNEY, Sept 10 (Reuters) - Asian shares started the week in the red on Monday, faltering for the eighth straight day while the dollar held on to recent gains as U.S. President Donald Trump raised the stakes in the heated trade dispute with China. The data point to a job market that remains resilient after almost a decade of economic growth, and even with tariffs and counter-tariffs on imports and exports looming over USA employers that rely on global trade. The tweet came in response to a September 5 letter Apple sent to the Office of the United States Trade Representative (USTR) warning of the potentially harmful effects of additional Chinese tariffs.
For now, that means Ford simply won't sell the vehicle in the United States.
The world's two biggest economies are clashing over USA allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from United States companies and challenge American technological dominance.
"It would not be profitable to build the Focus Active in the USA given an expected annual sales volume of fewer than 50,000 units and its competitive segment", a spokesman said, according to the Detroit Free Press.
Intel Corp said proposed tariffs would negatively affect USA businesses and "stifle advancements" in telecom infrastructure, including next generation technologies like 5G.More news: US East Coast braces for 'direct hit' from Hurricane Florence
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The Australian dollar, which is viewed as a gauge of confidence in China's economy because of the huge amount of Australian raw materials bought by Chinese companies, also came under pressure.It was trading near its lowest level against the United States dollar since early 2016, when fears of a collapse in Chinese growth roiled markets. The U.S. president called on the iPhone maker to build products in America if it wants to avoid tariffs on Chinese goods.
However, higher tariffs worldwide and stricter customs regulations have been threatening to dampen global trade. On Saturday, he posted a tweet suggesting Apple should move its production facilities to the U.S.
The Chinese plant isn't the only location where Ford will build the fourth-generation Focus so the automaker has alternative options for sourcing the Focus Active variant for the USA market, should the vehicle still be planned for our market. This is the full-blown trade war investors have been fearing, and it's depressing financial markets, as expected.
According to veteran journalist Bob Woodward's new book, Fear: Trump in the White House, the president had to be persistently talked out of making drastic decisions like pulling out of the World Trade Organisation and a trade deal with South Korea. Trump pledged on Friday that he is prepared to slap $267 billion in tariffs on Chinese products, in addition to the $200 billion he has already promised.
"Markets continue to be under pressure from a whole host of headwinds", said Tim Love, investment director of emerging market equities at fund manager GAM Holding AG.