For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
Chinese stock markets tumbled on Monday after US President Donald Trump threatened new tariffs on China, putting a trade deal in doubt.
President Donald Trump announced Sunday on Twitter that tariffs on $200 billion of Chinese goods will increase next week to 25% from 10%. Duties on more than 5,000 products made by Chinese producers, ranging from chemicals to textiles and consumer goods were increased.
The two countries are locked in a high-stakes dispute over China’s push to establish itself as a technological super power. The U.S. charges that China is resorting to predatory tactics — including cybertheft and forcing foreign companies to hand over technology — in a drive to establish Chinese companies as world leaders in advanced industries such as robotics and electric vehicles.
Stock markets fell on the news. The future for the Dow Jones Industrial Average lost 2% and that for the S&P 500 sank 1.9%. The Shanghai Composite index plunged 5.2% while the Hang Seng in Hong Kong sank 3.3%. Japan’s markets were closed for a holiday.
This had a great negative impact on Chinese stocks and will very likely to reduce the households’ demand for goods from China.