It turns back on the trade war between China and the United States. Beijing had announced that it would be forced to react to the decision of the American president, Donald Trump to impose 1% tariffs on 10 billion dollars of Chinese imports starting from 300 September. So it was. China will adopt new tariffs on 75 billion dollars of US imports.
In total, according to what was announced by the Council of State which deals with customs duties the new tariffs will concern 5.078 products, including cars made in the USA, and will go from 5 to 10 percent.
As for the timing, China will follow what has already been established by the White House. Two different tranches, the first in force from 1 September the second from 15 December.
Beijing's decision was immediate repercussions on stock exchanges which after the increases in the morning turn negative. Piazza Affari declined, losing 0,8% wearing the black shirt. Frankfurt (-0,5%) and Paris (-0,4%) were also negative. Under parity Madrid.
Opens in red Wall Street which deflects attention away from the forthcoming speech by Fed Chairman Jerome Powell. The Dow Jones, S&P 500 and Nasdaq started trading with declines of between 0,4 and 0,5 percent.
"Investors should focus on Jackson Hole, not China”, commented Peter Navarro, the 'hawkish' adviser to the White House in the field of trade. Speaking to Fox Business, Navarro explained that the negotiations on the Washington-Beijing axis will continue after China announced retaliation against the US.
