Follow China & East Asia Alerts Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
On Monday (Sept. 24), U.S. President Donald Trump more than quadrupled the number of Chinese imports subject to tariffs in the biggest escalation of the trade war yet.
And China's coming response could hit your portfolio…
The United States imposed tariffs on roughly $200 billion worth of Chinese goods yesterday, bringing to total amount of China's exports under pressure to $250 billion.
The White House's latest trade war salvo raises the import cost on nearly half of Chinese goods by 10%, tightening the belts of American manufacturers and putting the screws to Beijing in the process.
However, China isn't going to take abuse from the White House lying down.
In fact, China is on track to ramp up aggressive trade war practices that will only lead to further American retaliation, shaking the markets – and your portfolio…
New Tariffs Have All But Launched the Trade War
Following Trump's tariffs on Monday, the Chinese government introduced new tariffs of 5% to 10% on $60 billion worth of U.S. exports.
China's latest round of tariffs on American goods brings to total amount of U.S. exports subject to Chinese tariffs to roughly 90%.
According to Chinese Vice Commerce Minister Wang Shouwen, the United States is forcing them to resort to extreme tactics.
"It is like they are holding a knife to our neck," Shouwen fired back on Tuesday.
Don't Miss Out: The Treasury is sitting on an $11.1 billion cash pile, and a loophole entitles Americans to a sizable portion. Some are collecting $1,795, $3,000, or $5,000 every month thanks to this powerful investment…
In addition to imposing new tariffs, China also took the bold step of removing trade negotiations from the table for the foreseeable future.
On Saturday (Sept. 22), Beijing canceled upcoming trade talks with the United States.
China's refusal to send a delegation to negotiate trade has made it increasingly likely that there will be no deal to reduce tariffs before 2019.
In fact, this latest round of tariffs has likely extinguished all chances of an imminent trade deal between the world's greatest economic super powers.
And this escalation is going to hit American consumers – and investors – where it hurts most.
You see, Trump's latest rounds of tariffs are set to jump from 10 to 25% on Jan. 1, 2019, if no trade deal is reached.
This 15% increase will cause a definite increase in the price of consumer goods in the United States and put further pressure on American manufactures that are already feeling the pressure of higher prices.
Moreover, the White House is considering an additional round of tariffs on the remaining $267 billion worth of Chinese imports – a move that would place the entirety of Chinese imports under trade restrictions.
Unfortunately, American markets are likely suffer most.
You see, the United States intends to force China to the negotiating table with tariffs on $267 billion worth of Chinese imports. However, the Chinese are unlikely to budge.
With manufacturing and consumer costs rising because of tariffs, earnings reports could take a significant blow in the next quarter. And that will send stocks reeling from their recent all-time highs into the unknown.
However, that doesn't mean your wealth has to suffer…
Millions of Americans Now Entitled to Collect "Federal Rent Checks"
Forty-six years ago, Congress passed an obscure piece of legislation known as Public Law 92-313. And today, it's why the Treasury is sitting on top of an $11.1 billion pile of money.
Fortunately, Americans from coast to coast have discovered a loophole that entitles them to a sizable portion of this cash.
And they're racing to add their names to a special distribution list.
Some are now receiving monthly checks worth $1,795 each. Others are collecting $3,000, $5,000, or more every month. If you want to join them in this powerful investment income stream, you better hurry up.
Because this cash is getting scooped up left and right! Read more…