News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
  • When markets are falling, how can you short sell? Learn more here:https://t.co/K4EFd6A6xd https://t.co/ynjtSQqHVy
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!https://t.co/72oKM0kLHL https://t.co/dLBhWmxuub
  • Relative stability in EUR/USD has masked weakness in the Euro against most other major currencies, and that weakness can be expected to persist in the week ahead and likely for longer. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/g6aCr7Uxg2 https://t.co/KZHBa4GXCN
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/Z8oipLero0
  • Gold prices moved higher last week, but an upbeat US retail sales report underpinned Treasury yields on Friday, which weighed on bullion. Chinese Q3 GDP is in focus for XAU traders. Get your weekly gold forecast from @FxWestwater here: https://t.co/L9JstXgjx0 https://t.co/rCikjEv1Fm
  • Equity traders often focus their approach on specific sectors, designed to fit with their approach and style. What sector are you going to target? Read more to find out!https://t.co/5gbiHmY8yl https://t.co/dzRs61zPlt
Trump Announces Tariffs Against China, Brings US Closer to a Trade War

Trump Announces Tariffs Against China, Brings US Closer to a Trade War

Dylan Jusino,

- President Trump announces $50 billion in tariffs against China; aims for “reciprocal trade”

- Major trade steel exporters receive steel tariff exemption, but China does not

- DXY awaits response from China

- See the DailyFX Economic Calendar for upcoming economic data and for a schedule of live coverage see the DailyFX Webinar Calendar

A few days ago we have a brief summary of the recent global trade tensions including the US’ proposal to the EU for tariff exemptions. This afternoon, President Trump has doubled down on his initial steel tariffs by announcing an additional $50 billion in tariffs targeted directly at China. Secretary Ross reasoned that the new tariffs are justified given the technological property rights that China has stolen from the U.S. Trump argued that action levy against China could have been $60 billion but ultimately that figure came around to $50 billion. The President saw the measure against China as fair reasoning, “The word that I want to use is reciprocal… If they charge us, we charge them the same thing.”

In addition, earlier this morning US Trade Representative Robert Lighthizer announced that the European Union Australia, Argentina, Brazil and South Korea will get a temporary exemption form the steel and aluminum tariffs that the Trump administration announced earlier this month. Although, Lighthizer notably left out Japan, a major trade partner of the US. It appears that the Administration has tailored their protectionist measure towards nations in which the US runs the largest trade deficit. Here are some of deficits the US runs with key trade partners according to the Census Bureau in January:

  • China: -$35.95b
  • Japan: -$5.65b
  • Mexico: -$4.134b
  • Canada: -3.64b

Although, the recent strategy to target China on steel may be amiss. The US has now exempt the top for steel exporters to the US. Notably, China did not receive an exemption despite being the 10th top steel exporter to the US. Here is a list of where the US gets most of its steel from by percentage:

  1. Canada: 16.7 %
  2. Brazil: 13.2 %
  3. South Korea: 9.7 %
  4. Mexico: 9.4 %
  5. Russia: 8.1 %
  6. Turkey: 5.6 %
  7. Japan: 4.9 %
  8. Germany: 3.7 %
  9. Taiwan: 3.2 %
  10. China: 2.9 %
  11. India: 2.4 %

Earlier this month, Senior Currency Strategist Christopher Vecchio, explained the impacts of the tariffs and trade wars on the US. The Administration aims to “get China to modify its unfair trade practices.” However, the effect may be quite different. We will continue to cover the tensions between trade partners as they arise. Notably, how will China respond?

Chart 1: DXY 15-minute Chart (March19 – March 22, 2018)

Trump Announces Tariffs Against China, Brings US Closer to a Trade War

DXY hasn't shown much reaction to the announcement yet. Traders are likely waiting for a response from China and other key trading partners. At the time that this was written DXY traded at 89.87.

--- Written by Dylan Jusino, DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES