More Tariffs Incoming 💰
Trump threatens another 10% tariff
Late last week, President Trump tweeted that the U.S. will place a 10% tariff on $300 billion worth of Chinese imports starting in September. It will include iPhones, toys, sneakers and other consumer goods. This planned tariff and the other tariffs already in place would cover nearly all Chinese imports in the US.
The S&P 500 and the Nasdaq had their worst week in 2019 after the announcement while the Dow had its worst week since May. China promised to retaliate with “necessary countermeasures” if the tariffs go through.
The right focuses on the reasons why Trump threatened a new round of tariffs. They cite President Trump's comments to show that the planned tariffs are a response to China not following through with its latest promises to buy more U.S. agriculture and to stop the sale of fentanyl. These articles argue that the tariffs would make it even harder for China to wait out Trump in hopes that he would be replaced by a Democrat who is “less aggressive and less effective”.
The left focuses on the impact to the American economy if the tariffs go through. They highlight statements from retail executives warning customers of price increases on “just about everything Americans buy”. These articles caution that the unpredictable nature of the trade war might damage business confidence and could convince companies to pause hiring and making investments.
Where's the common ground?
Both sides agree that China has been engaging in unfair trade practices against the U.S. They also agree that China needs to follow through with its promises made during the G20 meeting with President Xi and President Trump. The disagreement revolves around if the additional tariffs would help or harm negotiations in resolving those issues.
Nothing will escape the tariffs
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