Posted By RichC on March 22, 2018
It doesn’t get much uglier for investing than inching closer to a full blown trade war with China (and others) … and the financial markets aren’t taking it well as they are not in or very near correction territory – perhaps the Fed can go easier on rate hikes?
President Trump followed through on signing a presidential memorandum that cites Section 301 of a 1974 US Trade law allowing unilateral actions against allegedly unfair trade policies abroad. Mr. Trump said that America has an “out of control” trade deficit and that China has been using “intimidation and subterfuge to acquire US technology.” This isn’t new and has continued for years without resolution — just lost US jobs and more business being done overseas. Few trade agreements have been able to improve China’s behavior and as the president notes, the US has consistently come out negatively after each trade negotiation deal. In any case, US stocks and equity investors took a big hit today with the DJIA down over 700 points.
‘It’s out of control,’ President Donald Trump says of U.S. trade deficit with China
WASHINGTON—The Trump administration will levy tariffs on tens of billions of dollars of Chinese imports, alongside restrictions on technology transfers and acquisitions by Beijing, moving to pressure China to curtail what the U.S. considers unfair trading and investment practices.