Stocks on Wall Street recovered at the end of today after losses following the Obama administration’s decision to slap extra duties on imported Chinese tyres.
But it was gains in utilities and industrial companies helped overcome weakness in the financial sector and other categories, according to the National Business Review.
Shares of US tyres manufacturers also rallied after the US imposed tariffs on Chinese tyres. Cooper Tire and Rubber shares are up 8% and Goodyear Tire and Rubber 4.2%.
But there will be nervous times ahead as China has reacted angrily to the decision, accusing the US of “protectionism”.
The US decision was intended to “remedy market disruption caused by a surge in [Chinese] tyre imports” into the US.
But it has provoked a sharp response from the Chinese ministry of commerce and played havoc with the share prices of Far Eastern tyre manufacturers.
China’s state media said the US import duties would cost 100,000 jobs and $1 billion (£600 million).
Chinese authorities have said they will launch an antidumping investigation into US sales of chicken and auto products.
Denna Bowman, Head Office