Tariffs are all that stock markets and people are thinking about. Investors who step back to recall the timeline should only focus on tariffs against China.
When the Administration introduced tariffs against Mexico and Canada, it hinted at no more than 10% tariffs against China. After “Liberation Day,” when stocks fell at a pace comparable to Black Monday, the U.S. said it would add more tariffs on China.
On April 7, Trump doubled down on the global trade war escalation. He threatened to hike duties on China and the European Union. The President said the country has the only “chance to reset the table.” China would face another 50% in tariffs on U.S. imports if the country did not cancel its 34% tariffs imposed on U.S. products.
U.S. firms like Apple (AAPL), Nike (NKE), and Tesla (TSLA) process goods in China. The duties would increase their input costs.
The European Commission is proposing a 25% counter-tariff on U.S. goods. Investors should avoid holding companies that produce soybeans, nuts, and sausages.
Chinese technology stocks erased around half of their post-election gains. Alibaba (BABA) closed at $105.98, down 24.8% in the last month. Chinese media firms like Bilibili (BILI) and iQIYI (IQ) fell. In Taiwan, Taiwan Semiconductor (TSM) fell by 17.5% in the last month
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Dozens of countries want to discuss the tariffs before they take effect this Wednesday.