Stocks and commodity markets fearful of trade wars.
Stocks and commodity markets fearful of trade wars.
Update: Apr. 6, 2018 1:47 AM ET
Trump instructs U.S. trade officials to consider $100 billion in additional tariffs against China
China will fight unilateral U.S. protectionism “at any cost,” the Ministry of Commerce said Friday.
futures dipped on the news (S&P down 1.2%, Dow down 1.3%)
On Thursday, March 8, President Trump announced he was imposing import tariffs of 25% on steel and 10% on aluminum. The new restrictions cover an estimated $46.1 billion of imports, or about 2% of total U.S. goods imports in 2017.
China Respsonse
China commerce ministry says initiated WTO dispute procedure against US 301 tariffs investigation
Impossible for China alone to cut its surplus with the US Deficits are determined by market forces, not governments
US needs to keep huge trade deficit to maintain payment position of USD China will not give in to any external pressure
China’s retaliatory measures Plans 25% tariff on US soybeans
New tariffs to also impact autos, chemicals
Effective date for new tariffs to be announced at a later time
Reciprocal tariffs to amount to $50 billion of US goods
Planning reciprocal 25% tariff on US aircrafts
Reciprocal tariffs to also include US corn, cotton, some beef products
To include orange juice, wheat, certain plastic products, some tobacco products
With markets already vulnerable with anti Amazon Trump tweets, the Facebook $FB scandal hitting the FANG and Nasdaq stocks and the Fed raising rates investors don’t need more reasoons to exit. We saw money flee stocks into bonds with the fear magnet 10-year Treasury yield falling.
European and American traders have to decide on risk with Trump tweets and China statements.
From The TradersCommunity News Desk