The American stock futures went down in Asian trade on Tuesday, after the import duties of Donald Trump came into effect. At the same time, Beijing announced a series of countermeasures. In that respect, the Hadels War started.

The trade struggle escalates

Trump’s 10% input rate on Chinese goods came into effect on Tuesday, without any notice of the White House about possible relaxation of the measure.

China responded with input rates to some American products and announced export restrictions for materials related to tungsten, Bloomberg reported. In addition, an antitrust study into Google was started and clothing company PVH Corp and biotechnology company Illumina were added to a list of ‘unreliable entities’.

These countermeasures indicate the start of a new trade struggle between the largest economies in the world, in which investors are preparing for further escalation, given the hard attitude of Trump to Beijing.

The futures for the S&P 500 fell by 0.3% to 6.001.50 points, while the futures for the Nasdaq 100 fell by 0.5% to 21,291.25 points. The Dow Jones-Futures also fell by 0.3% to 44,436.0 points.

Trump temporarily saves Mexico and Canada, but no delay for China

Trump postponed the proposed 25% import rates for Canada and Mexico on Monday with 30 days. But there was no delay for China, and he will have a conversation with President Xi Jinping later this week.

China is the third largest trading partner in the US, after Mexico and Canada. Every counter measure of Beijing could further destabilize world trade. Analysts and Federal Reserve officials have warned that the increase in American rates, which will be worn by American importers, will probably lead to higher inflation and slower economic growth in the coming months, which has a negative effect on the market.

As a result, the Federal Reserve could rather decide to reconsider future interest rate letings, now that inflation is related to the rates persist and the uncertainty about Trump’s economic politics continues to exist. That could turn out well for the Bitcoin course.

Trade War US and China threats technology and Apple

Tim Cook, CEO of Apple, has major interests in the outcome of this trade struggle, since his company is closely linked to China for the production of many of Apple’s products. It is still unclear whether Trump’s hard position against Beijing will influence the broader technological sector, which is already struggling with problems such as chip shortages and the search for alternative production centers outside of China.

Investors and analysts continue to follow the situation closely, with the expectation that tensions between the US and China may escalate further, which can lead to a disruption of global economic growth.

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Source: https://newsbit.nl/us-aandelenfutures-dalen-door-chinese-handelstarieven-beijing-slaat-terug/



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