The Chinese-America trade war doesn’t officially go into effect until mid-May. God willing, there will be negotiations that fail and the tariffs could go right into effect, absolutely fucking all of you morons long Chinese equities.
Just last week, China’s second largest maker of communication equipment, ZTE, was slapped with a 7 year ban from the United States for being an egregious company, currently and now deemed a national security risk.
ZTE sold sanctioned equipment to Iran and for that — fucking banned.
“ZTE made false statements to the U.S. government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation,” Commerce Secretary Wilbur Ross said in a written statement. “Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored.”
This had an ancillary effect on US optical makers, such as Acacia, who’s shares fucking plunged last week by 30%.
Now China is throwing shade at the proposed $44b merger between Qualcomm and NXP — causing both stocks to Mcplunge lower by ~5%. The possible blowbacks to a true Americana trade war with China will be hardest felt in the semis and the textile industry.
Perhaps you should be making arrangements to exit these shares?
The semis topped in March and are now steamrolling lower.
As per the NY Times, here is the short-term timeline on the looming trade war.
If you enjoy the content at iBankCoin, please follow us on TwitterOn May 1, exemptions to the tariffs on imported steel and aluminum expire.
On May 22, the public comment period ends for another $50 billion worth of tariffs, and the Trump administration can announce a final list of targets.
And Aug. 18 is potentially the deadline for the administration to act on an investigation into Chinese trade practices. But there’s a provision for a 180-day delay after that.
Key caveats: President Trump has the power to pursue trade policy almost at whim. And a W.T.O. proceeding against China could take years.
Drumpf!
Nobody wins trade wars but China won’t lose at the end because China makes things and can flood different markets with their cheap shit.
You mean I won’t be able to buy tools that rust solid within a month or dog food with real dog meat?
Sorry, no. But if it’s any consolation, just feed your dogs baby food made in China. Same ingredients.
TRUMP COLLUDED
WITH CHINA!
Plot twist report from mueller
Let the Trump-Putin fellatio comments commence
https://www.reuters.com/article/us-usa-trump-russia-putin/russia-says-trump-invited-putin-to-u-s-during-phone-call-idUSKBN1HR0LK?utm_campaign=trueAnthem:+Trending+Content&utm_content=5ad99bb204d30105396d3fbb&utm_medium=trueAnthem&utm_source=twitter