Waving the Green Flag for Tariffs
We’ll be fast asleep, but at 12:01am this Friday tariffs on $200 billion of Chinese goods will jump to 25% from 10%, U.S. Trade Representative Robert Lighthizer confirmed yesterday.
What it means: A string of positive trade negotiations seems to have collapsed in recent days.
- First came President Trump’s tweet-threat from seemingly out of nowhere Sunday. That crushed China’s stock market and sent the VIX volatility index soaring 20% yesterday.
- Lighthizer shed more light: “Over the course of the last week or so, we’ve seen an erosion in commitments by China, I would say retreating from commitments that have already been made, in our judgment.”
That’s not a development global investors or trade-sensitive companies wanted to hear.
Looking ahead: Chinese Vice Premier Liu He is still expected to arrive in the U.S. for negotiations this Thursday. Either there’s still hope for an agreement or he forgot to get trip insurance.
I'm actually really thrilled about Trump putting these Tariffs on Chinese imports. I think it will be a real wake up call to all of those who are importing their products from China and will allow for more business to come from the United States.
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