Most commodities trade lower Wednesday amid intensifying US-China trade conflict. Basemetals were hit the most with Zinc falling nearly 4% and copper trading down by 3%
The Trump administration on Tuesday released a list of $200 billion Chinese goods on which 10% import tariffs will be imposed. The tariffs will not go into effect immediately but will undergo a two-month review process, with hearings Aug. 20-23. China is yet to respond in full to President Donald Trump's plan. A Commerce Ministry official said that China will take countermeasures, without specifying what they will be.
The latest move comes after US and China on July 6 imposed 25% import duty on $34 billion goods. Trump has threatened to impose import duty on as much as $500 billion Chinese goods.
There is no inclination of US-China holding talks to resolve their trade dispute which means that trade worries will persist and this will keep risk sentiment low.