While we were all out enjoying our weekends, President Trump was busy with comments about the global trade war Sunday, primarily where China is concerned. In shocking and unexpected news, President Trump Tweeted Sunday the following:
“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….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”
This alarming announcement comes in the wake of quiet while businesses across the world were expecting a deal to be reached. A deal was expected in January, then in March, and then in late April or Early May. The comments made over the weekend paint a stark contrasting picture to what many of us thought was a near resolution to the ongoing trade war with China.
Globally, markets plummeted and further losses are expected as the week continues. Individuals with objectivity are watching and experts believe that this is an expression of frustration, more than a guarantee for increases. We expect the raise to 25%, while likely, is more possible to be narrowly avoided. More to come as the situation develops.