Trade War Update: Trump Readies New Tariffs on all $500bln Worth of Chinese Goods
Trade War Analysis and Talking Points
- Trump Issues New Tariff Threat on all $500bln Worth of Chinese Goods
- Global Equities Dive Following Latest Threat, Eyes Now on China’s Response
See our Q3 FX forecast to learn what will drive major currencies throughout the quarter.
Trump Issues New Tariff Threat
Two weeks after the official start of trade wars, in which the US imposed $34bln worth of tariffs on Chinese goods. The trade war dispute between the US and China has now kicked into high gear after reports that President Trump is readying new import tariffs on all $500bln worth of Chinese goods, while the President added that China have failed to talk to anyone from the US in order to negotiate a deal.
Yuan and Equities Slide
In an immediate reaction to the new threat from President Trump, global equities fell across the board with the DJIA falling 100 points, having made a break through the 25000 level. Elsewhere, USDCNH which has garnered a significant amount of attention given the Yuan plunge, posted a fresh 1-yr high after touching 6.82. Concerns are now for headlines regarding China’s response relating to these latest threats from the Trump administration.
Dow Jones Price Chart: 1-Minute Time Frame (Intra-day)
BACKGROUND OF TRADE WARS
--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.