iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Trump Ups China Trade War — Sets Plan in Motion to Exact Tariffs on $200 Billion In Goods

I don’t care about right or wrong, or if this will even happen. All I care about is investor psychology and how this news might affect equities. Without question, affixing taxes on $200b in goods is something. As a matter of fact, it’s rather significant to the point that if China retaliated in kind, they’d be hitting ALL US goods with tariffs. That’s because they export so much more to us than the other way around.

Right now futures are -130, Nasdaq -50. I expect this news will marinate and work like a poison. This is toxic. Expect a sharply lower open in the AM.

Trump’s love letter to China.

THE WHITE HOUSE

Office of the Press Secretary

FOR IMMEDIATE RELEASE

June 18, 2018

Statement from the President Regarding Trade with China

On Friday, I announced plans for tariffs on $50 billion worth of imports from China. These tariffs are being imposed to encourage China to change the unfair practices identified in the Section 301 action with respect to technology and innovation. They also serve as an initial step toward bringing balance to our trade relationship with China.

However and unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports. China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.

This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods. This is unacceptable. Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States.

Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the United States and China must be much more equitable.

I have an excellent relationship with President Xi, and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world.

We will continue using all available tools to create a better and fairer trading system for all Americans.

Lucky for me, I step into tomorrow with ~80% cash — like a true man — bacon, whiskey, and cigars all wrapped up into one being, winning.

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12 comments

  1. it is showtime

    “Trade War”

    was not

    over
    likeisaidyoufucknpansies

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    • moosh

      That is just pitiful. You are trying to hump trade wars as a means to extrapolate money from markets?

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      • it is showtime

        It was part of his platform.
        It’s called reality.
        And that the
        “Stocks”
        cantstayupforever

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    • WrongView

      I was thinking this might turn into some meaningful downside, but seeing this I am persuaded it is likely to blow over quickly.

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  2. lesurgeon

    Just yesterday this was a Nothing Burger topped with nothing sauce .

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    • it is showtime

      like fundamentals? like valuations?

      the commandeered-Programmed djia and nasdaq can’t mask… everything… forever
      (of course it didn’t matter, look at the intradays last week, the subroutines were Glaring)

      “But showtime” “You said reckoning”
      s
      t
      a
      y
      t
      u
      n
      e
      d

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  3. cancel19

    Great! Now I can buy low to sell high again. Wash Rinse Repeat

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  4. wolfdaddy

    The only thing toxic is the shit they send over here. Fuck them

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  5. soupbone

    Trump will be impacting business and this will not go well for him.

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  6. butte2butte

    He did say this was a top priority of his a few years ago, and he does have a way of actually giving his focus to the marquee platform issues, whether you like it or not. It’s a fact that cannot he argued. This trade shit had to happen now. Summer 2019? Too close to the next election to get his hands dirty with this. Instead flesh it out this summer-take the heat-be the excuse the markets could use for it’s continued correction-get resolution by fall and then try and sell to the public as win on the trail in 2019 and forward.

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  7. jbandy

    Agree that this one may linger over the market. Kim Jung Un just headed to China for a 2-day summit. China can pull that lever if they are unhappy with Trump.

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