Markets slide, then recover after Trump’s latest tariff salvo
by Les Sillars
Posted 7/20/18, 11:55 am
U.S. markets dropped early Friday after President Donald Trump indicated he is prepared to impose tariffs on every product imported from China but rose after news of strong quarterly results came out, with the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite all rising.
“I’m willing to go to 500,” Trump said in a taped interview with CNBC that appeared Friday morning, referring to the $505.5 billion in Chinese imports. It’s the latest salvo in a trade dispute over what the Trump administration calls China’s “predatory practices.” U.S. officials have put tariffs on $34 billion worth of Chinese goods and announced a second possible round targeting another $200 billion. China has retaliated with duties on U.S. imports in sectors, such as agriculture, calculated to hurt Trump politically.
On Thursday, at a U.S. Commerce Department hearing about possible tariffs on vehicles, automakers, autoworkers, and car dealers argued that the taxes would raise car prices, squeeze automakers, and invite retaliation from U.S. trading partners and allies.
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