World stock markets fell dramatically early Friday following President Donald Trump’s remarks about being prepared to slap new tariffs on Chinese imports.
The commander in chief threatend to “go to $500 billion” in duties on all Chinese exports, sending the yuan tumbling 0.4 percent against the dollar.
The United States hasn’t had a Trade Surplus with China in 40 years. They must end unfair trade, take down barriers and charge only Reciprocal Tariffs. The U.S. is losing $500 Billion a year, and has been losing Billions of Dollars for decades. Cannot continue!
— Donald J. Trump (@realDonaldTrump) April 7, 2018
France’s CAC 40 dropped 0.7 percent, Germany’s DAX fell 0.5 percent, and Britian’s FTSE 100 fell 0.3 percent as both S&P 500 and Dow futures were down between 0.4 and .02 percent.
“One theory is that the PBOC (People’s Bank of China) is depreciating the yuan because it has not enough ammunition to fight a dollar-for-dollar increase in tariffs,” Francis Tan, an economist at UOB Bank, explained. “The markets are very risk-off; there is a loss of confidence right now.”
Meanwhile, the president continues to fight for a level playing field with America’s trading partners – but not everybody agrees with his aggressive approach to free and fair trade.
US automakers, dealers and suppliers remained united in opposition to the president’s tariffs for fear it would drive prices up.
“A 25 percent tariff on imported autos and auto parts would only lead to fewer sales, which leads to fewer American jobs,” warned Jennifer Adair, a quality team leader at Toyota Motor Manufacturing in Indiana. “We cannot let that happen.”
“At the end of the day, tariffs are taxes, and what the administration is trying to do today is to impose new taxes on the American people,” said Sen. Doug Jones (D-AL).