Escalating trade tensions between the U.S. and China remain the financial markets’ hottest topic. President Donald Trump seems to be celebrating winning the first battle of this war, saying that “tariffs are working big time” in a Tweet on Sunday. He says that they will enable the U.S. to start reducing the large amount of debt accumulated throughout President Barack Obama’s administration.
A fresh wave of risk aversion swept across financial markets after the United States threatened to impose tariffs on an extra $200 billion worth of Chinese goods. This unfavorable move comes just days after the two countries slapped tit-for-tat tariffs on $34 billion worth of each other’s imports.
“So it begins.” This is what King Theoden said right before the Battle of Helm’s Deep in the Lord of the Rings. Fortunately, the army of Uruk-hai doesn’t threaten the kingdom of men. But something else – also dreadful – endangers us. Trade wars.
U.S. President Donald Trump on Thursday spoke positively about a border adjustment tax being pushed by Republicans in Congress as a way to boost exports, but he did not specifically endorse the proposal.