Donald Trump Imposes Tariffs on China to the tune of $34 Billion and increases Trade War tensions by threatening $500 billion!
The Donald Trump Trade War is On! Let’s wait and see what China come back with in response. It wasn’t enough for Donald Trump though, he had to threaten China with a further $500 Billion in tariffs. That was the amount of the total goods imported by USA from China last year!
This is getting really serious now, or is it?
The $34 billion in tariffs is the first part of levies on a total of $50 billion of Chinese products that Trump announced in June. The second part, with tariffs on $16 billion in Chinese imports, is scheduled to take effect in two weeks. China has warned it will retaliate in kind, immediately!
I ask myself is all of this “trade war stuff” just a game for Donald Trump?
He is threatening China, Canada, Mexico and the EU with tariffs, he was threatening the auto manufacturers with 20% tariffs and then he flip flops and say’s actually how about 0% tariffs all across the board! I mean it is impossible to keep up with with this president and his whimsical ways and constant bluffing and bullying tactics .
I cannot see this being good for markets. But watch out because even we have been caught out on what seems to be very negative news flow for the Indices but then Trump tweets something and they start to rally again. So investors will stop paying so much attention to what Trump say’s. And pay more attention to what he actually does.
China will play the currency game, given that the PBOC is basically a law unto itself. Let’s see how things go with Trump and Putin at their summit, and let’s see how the EU will respond.
I will be staying short on the DAX and NASDAQ.
Here is a chart of the DAX and our technical set up and target.