Washington – President Donald Trump says the U.S. will apply a new tariff of 10% on about $300 billion worth of products from China on Sept. 1.
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Trump tweeted Thursday amid slow-moving talks with China that negotiations will continue. But he blamed China for not following through on stopping the sale of fentanyl to the United States or purchasing farm goods in large quantities.
The U.S. has already applied tariffs of 25% on $250 billion worth of goods from China. China retaliated with tariffs on $110 billion in American goods, including agricultural products, in a direct shot at Trump supporters in the U.S. farm belt.
The Orange Yutz has just raised prices 10% on Americans. China and the corporations don’t pay. The US public will. The holy Stock Market went down 600 points. But its OK, he hates immigrants.
I think China will start dumping treasuries and exchange for gold. While the market in the past was able to absorb their dumping, they now have over $2 trillion in all types of liquid us securities, including equity. While the market may be able to absorb it, the psychological effect on the dollar can be meaningful, driving it down and bringing inflation (above 3% an on, including wage inflation). Inflation could be a devastating blow to the US. It could raise interest rates and strangulate a lot of people/businesses.