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China
announces new tariffs on 106 US products, including soy, cars and
chemicals
- The effective start date for the new charges is not announced, though China's Ministry of Commerce says the tariffs are designed to target up to $50 billion of U.S. products annually.
- The 25 percent levy on U.S. imports includes products such as soybeans, cars and whiskey.
- The move comes less than 24 hours after President Trump unveiled a list of Chinese imports that his administration aims to target as part of a crackdown on what he deems as unfair trade practices.
7
April, 2018
China announced additional tariffs on 106 U.S. products on Wednesday, in a move likely to heighten global concerns of a tit-for-tat trade war between the world's biggest economies.
The
effective start date for the new charges was not announced, though
China's Ministry of Commerce said the tariffs are designed to target
up to $50 billion of U.S. products annually.
The
25 percent levy on U.S. imports includes products such as soybeans,
cars and whiskey, Beijing said. The full list can be found here.
Trade
showdown
The
move comes less than 24 hours after President Donald Trump unveiled a
list of Chinese imports that he aims to target as part of a crackdown
on what he deems as unfair trade practices.
Sectors
covered by Trump's proposed tariffs include products used for
robotics, information technology, communication technology and
aerospace.
The
trade showdown between Washington and Beijing has rattled investors
and fueled market fears that the dispute could soon spiral into a
full-blown trade war.
When
asked whether global markets were now officially observing an all-out
trade war, Goldman Sachs' chief global equity strategist, Peter
Oppenheimer, told CNBC: "I think it is clearly a trade battle at
the very least."
"I
think the anxiety the market is reflecting is that it could escalate
into a generalized (trade) war," he added.
China's
proposed countermeasures prompted U.S. stocks to plunge on Wednesday.
The Dow Jones industrial average tanked more than 450 points, with
Boeing and Caterpillar leading all stocks in the index lower.
Meanwhile,
Wednesday's announcement also prompted European stocks to extend
losses, with the pan-European Stoxx 600 hitting a session low of 0.8
percent shortly after the news.
"I
think Beijing is very keen to show that it is not going to be
bullied, too," Neil Dwane, global strategist at Allianz Global
Investors, told CNBC on Wednesday.
"(China)
is going to position this as them responding to American aggression
rather than necessarily being part of the problem," he added.
The
Chinese yuan also suffered its biggest daily fall against the dollar
in two weeks after the measures were proposed. The currency slipped
0.4 percent to hit 6.3015 per dollar.
Why China's Soybean Tariff Changed Everything
While
markets are being somewhat drama
queen-ish this
morning, China's trade war retaliation was telegraphed well in
advance, and as we reported nearly two
weeks ago,
"China
About To Launch "Tens Of Billions" More In Tariffs." As
such it should not have come as a surprise that China did just that
overnight, when it announced 25% tariffs on $50 billion in 106 US
imports.
What was a
surprise, was the unexpected announcement that China would also
include US soybean exports in the list of items impacted by tariffs,
something which we noted earlier opens up the door to a new, third
round of tariffs by the US, which would assure that a "nuclear"
trade war has indeed broken out.
China's response was expected, but inclusion of soybeans was not. It will infuriate Navarro/Trump and lead to 3rd round of escalating tariffs
It
is the presence of soybeans in the tariff list that has startled
China watchers and analysts, such as Capital Economics' Julian
Evans-Pritchard, who writes that "China’s rapid and aggressive
response to the proposed US tariffs has raised the stakes for both
sides."
This
Is Not About A Trade War, It's About Crashing & Resetting The
Economic System
Robert Fanny (aka ‘Robertscribbler) takes time off scribbling about electric cars to say something about climate change
Peter Schiff Warns 'Deep State' Unafraid To Crash The Market On Trump's Watch
4
April, 2018
The
S&P 500 closed down more than 2.4% Monday and the broad market
index posted its worst April start since 1929. This
slide in the markets caused the worst start since the Great
Depression, sparking fears we are on the same path.
The Dow
Jones industrial average fell
1.9 percent (or 458 points) as China’s retaliatory tariffs against
United States agricultural goods stoked fears of a global trade
war. Dow
stocks with large international markets now
exposed to global tariffs such as Boeing and 3M, led the decliners.
[And
markets are accelerating back lower today]
Many
market analysts have predicted we will live through another
Great Depression, and
Peter Schiff says this next one will be far worse than one our
ancestors lived through
“The bad news is, we are going to live through another Great Depression and it’s going to be very different. This will be in many ways, much much worse, than what people had to endure during the Great Depression,” Schiff says.
“This is going to be a dollar crisis.”
“The
Fed thinks they create economic growth…by [saying] ‘let’s
jack up the stock market and then the economy’s going to grow and
people are going to go out and spend more money.,’” says Schiff.
“It’s actually doing damage. If you create a bunch of phony wealth, and people end up spending money that they otherwise would have saved, you are undermining economic growth.”
And
Schiff, who accurately predicted the 2008 recession, has now
predicted the dollar crisis. The
dollar is now in a downward spiral thanks to China’s petro-Yuan.
Bespoke
Investments Co-Founder Justin Walters, who
also noted the historic nature of the close,said
in an email that equity fears aren’t likely to abate until earnings
arrive.
“Based on recent market action, the bears clearly have control right now,” Walters wrote. “The path of least resistance is lower until something comes along to reverse that trend.”
Schiff,
in contrast, says the
deep state (those who operate the Federal Reserve) is not afraid to
crash the economy on Trump’s watch.
Schiff says “it’s not a good thing” that the economy is going to crash and burn.
“Unfortunately, that’s what Trump has inherited from Obama. But it’s not even really just Obama, it’s the federal reserve. It’s the monetary policy that has been passed like a baton from Clinton to Bush to Obama and now to Trump. And we’re near the end of the game and unfortunately, Trump’s gonna be the fall guy. This thing is all gonna collapse while he’s president.”
The tax cuts will give Democrats a reason to blame the collapse all on the Republicans, says Schiff.And we are getting close to this collapse. –SHTFPlan
The trade
wars with China is also the perfect smokescreen for
an economic crash and will allow the mainstream media to wholly blame
Trump when it happens.
I’m hitting readers with all of this because I am growing rather tired of the contingent of Trump apologists in the liberty movement scrambling to defend every single Trump action no matter how illogical. These people should know better. Sorry, butTrump is not “playing 4D chess” against the globalists. His primary actions have only served so far to create a useful distraction away from the globalists.
The disturbing key to all of this is the fact that many of Trump’s policies are things that I and many others have argued for in the past. The problem is, he is implementing them out of order and with bad timing, which will only make such policies appear destructive in the end, rather than constructive. –Alt Market.com
Trump
is looking like he will be fall guy, and when the economy does crash;
and it will, Trump won’t be able to do a whole lot to stop it –
in fact, he will be seen as the cause. His policies are
slightly dangerous, but he and his “ride or die” supporters won’t
state the truth and just like the mainstream media, they will tow the
line with no real blame from either side going to where it belongs:
The Federal Reserve.
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