China imposes 34% reciprocal tariffs on imports of US goods in retaliation for Trump’s trade war

5 comments

1. Following president Trump’s decision to impose an additional 34% tariff on all Chinese goods imported into the US, China has now placed a 34% tariff on American goods. The sharp escalation has sent S&P and DJIA (edit: futures) into a free fall. Even before China’s announcement, stock markets across the globe were hammered.

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3. The market reaction to this China news isn’t as much about the retaliatory tariffs as much as it is about China signalling to other scared parties that they can go ahead and impose tariffs too. Some are probably scared (EU) and don’t want to do it just yet. China is opening the flood gates.

4. The Economist ran an op-ed about the mood in China at the moment. Contrary to most of the rest of the world the Chinese are elated.

   I think many Chinese believe this is the inflection point where the US starts to retreat into isolation and China cements its position as the major economic superpower for the 21st century.

   Well played Mr Trump.

5. Retaliatory tarrifs should be targeting Republican states – agriculture, cars (especially Tesla), motorcycles and other goods we can buy from elsewhere. The whole world should reply with similar tarrifs to hit Republican states hard.

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