By Michael Baker

The trade war is in full effect and equities took a small nosedive last night after it was revealed the Trump administration is preparing further tariffs on China.

U.S. Trade Representative Robert Lighthizer released a statement last night which stated:

“As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 per cent on an additional $200 billion of Chinese imports.”

The statement goes on to lament China for its “abusive trading practices”.

A 200-page report which details all the tariffs contains over 6,031 areas where the new measures will apply. Products ranging from printed circuit assemblies, wooden furniture to vinyl tile floor coverings will now face extra tariffs.

The Dow Jones saw a quick reaction to the downside after seeing strong gains recently. The major US index dropped 186 points in a few minutes and eventually bottoming out around 24620 a few hours later. Markets will keenly watch for any retaliatory measures from China.

Wall Street – 4 hr Chart – Equities Drop On New Tariff Measures


Source: ETX Capital

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