Markets Tumble as Trump Escalates Trade War

Overnight and despite warmer tones between China and the US, Donald Trump has decided to add tariffs to virtually all Chinese goods.  That’s another $300bn worth of imports that will face tariffs. In total over $600bn of Chinese exports will face tariffs when entering the USA.

These tariffs also have knock on effects for the rest of the World that exports into the US, in particular Japan, France and Germany.

This sent shock waves through the market.  At the time of writing 1pm:

• FTSE 100 (UK) is down 1.83%
• Dow Jones (USA) is yet to open, but futures are betting down
• Dax (Germany) is down 2.58%
• CAC (France) is down 2.81%
• Shanghai Comp. (China) is down 1.41%
• Hang Seng (Hong Kong) is down 2.35%
• Nikkei (Japan) is down 2.11%

Comment

This story has plenty more time to run with Presidential Elections next year and Trump pushing for yet another interest rate cut by the Federal Reserve.