On Friday U.S. President Donald Trump heaps an additional 5% tariff duty on some $550 billion in targeted Chinese goods in the latest US-China trade war escalation.
Trump’s decision, announced on Twitter, came just hours after China unveiled retaliatory tariffs on $ 75 billion of US goods, prompting the US president to ask US companies to relocate their activities outside China.
The intensification of the US-China trade war has fueled market fears that the global economy will sink into recession, causing US stocks to plummet as Nasdaq Composite .IXIC falls by 3% and S & P 500 .SPX of 2.6%.
US Treasury yields have also declined as investors seek safe haven assets, and crude oil, targeted for the first time by Chinese tariffs, has fallen sharply.
Trump’s tariff response was announced after markets closed on Friday, leaving potentially more damage for next week.
“Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,” Trump said on Twitter. “As President, I can no longer allow this to happen!”
He added that the United States would increase the current level of tariffs on Chinese imports by $ 250 billion from 30% to 25%, as of October 1st, the 70th anniversary of the founding of the communist People’s Republic of China.
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