Here we go again.
Any hopes for a trade war resolution may have just faded.
In fact, just this morning, China announced plans to raise tariffs on more U.S. imports.
“New tariff rates will apply to about $75 billion worth of US goods,” China stated. “New tariff rates imposed on some US goods will be ranging from 5% to 10% and will take effect on September 1 and December 15.”
China also noted a 25% tariff will be imposed on U.S. cars and a 5% on auto parts, which will go into effect on December 15, 2019. In addition, a total of 5,078 U.S. products will reportedly will affected, most notably autos.
“Based on what I know,” tweeted China’s Global Times’ chief editor, “China will take further countermeasures in response to US tariffs on $300 billion Chinese goods. Beijing will soon unveil a plan of imposing retaliatory tariffs on certain US products. China has ammunition to fight back. The US side will feel the pain.”
On the news, futures plummeted well into negative territory.
From here, it’ll be interesting to see how the U.S. reacts to the news.
Just last week, President Trump extended a reprieve to Huawei, allowing it to buy supplies from US companies so that it can continue servicing existing customers.
That also follows the Administration’s news that it would delay the 10% tariff on $300 billion worth of consumer goods in what appeared to be a panicked response to the market’s vicious selloff. Now, instead of going into effect on September 1, 2019, those tariffs won’t start until mid-December if at all at the moment.
However, with the latest trade war issue, things could get a bit uglier.
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