US weighs fresh tariffs on Chinese imports – will Trump’s strategy pay off?
President Trump and his wife Melania pictured during their 2017 trip to China. Credit: The White House
European markets and Wall Street futures slipped again at the open Friday, after President Trump escalated trade tensions late Thursday. The pullback in stocks comes on the heels of a stronger day for markets yesterday. Indeed, April 5th was the best day for UK equities since the Brexit vote in June 2 years ago.
The US has threatened to add an additional $100 billion of tariffs to a range of Chinese imports, after China outlined their own retaliatory tariffs on over 100 US products earlier in the week. The move came just as data was released which showed America’s trade deficit widened to $57.6bn in February as its international trade hit a monthly record.
The President said on Thursday: “Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers.” He added, “In light of China’s unfair retaliation, I have instructured the USTR to consider whether $100bn of additional tariffs would be appropriate.”
The news out of Washington has made it a ‘risk-off’ day once again, as traders brace for more volatility, though indices in Germany, France and Britain are beginning to rise after a sloppy start.
ING analyst: Trump could win on trade
An international trade analyst at investment firm ING thinks Trump may have a chance of coming out of the trade dispute with a win. Speaking in a blog post, ING’s Raoul Leering wrote: “Does President Trump really not understand that a trade war is a lose-lose situation or is he playing a smart strategic game? There are indications the latter is the case.” Leering added that other countries depend far more on American demand for their products than the other way around. “It is likely that China will, in the end, cut its losses and be willing to give Trump something.”
An example of a country that moderated its approach to trade at the request of the US was South Korea, which recently agreed to open their markets further to American vehicles. However, given China’s position as more of an adversarial power to the US and its record on intellectual property theft, it’s unlikely the 2 nations can come to an amicable agreement as quickly in comparison.
Given China said it would “firmly fight back” at any cost if the U.S. wanted to escalate a trade confrontation, the stakes are extremely high!
White House officials will be hoping that the measures will force the Chinese to come to the table and address their unfair trade practices (including widespread intellectual property theft and steel dumping), but it could turn into a lose-lose situation for both nations unless a breakthrough is made.
Want to learn more about the markets and how to become a better investor?
Download the Invstr App now.
All emails include an unsubscribe link. You can opt-out at any time. See our privacy policy.
ALL RIGHTS RESERVED © INVSTR LTD. 2018
Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions.
DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.
There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees
The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees
This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”
A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure
ALL RIGHTS RESERVED © INVSTR LTD. 2018
Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.