An Additional $1000 Billion Proposed Tariffs on China
By: Eddy Peng Apr 6, 2018
The intraday trading of the Dow Jones index (US30) tumbled 1.35 percent and was positioning at 24129 as of 11:30 a.m. in Sydney, almost erasing gains acquired on past two days. The market crash happened after President Donald Trump said on Thursday that he was considering $100 billion in additional tariffs on China, fueling an already heated trade dispute between the world’s two largest economies.
It is widely considered that both two countries still left the door open for a negotiated solution to avoid tariff proposals, but after China shot back with a list of similar duties on American imports including soybeans, planes, cars, beef and chemicals, U.S. quickly responded another $100 billion proposed tariffs, considered in light of China’s unfair retaliation.
The tit-for-tat tariffs have stirred fears that the two countries will spiral into a trade war that will crush global growth. Republican lawmakers from Western and Midwestern states have voiced worries about a big hit to U.S. farming exporters.
Technically looking at the daily chart, the index was moving along with a narrowing channel after retreating from the historical high, and was hindered by the upper channel line on today’s trading. What investors need to be more cautious about is not be so rush before a breakout lower or higher, which means a confirmation of subsequent movement.
Chart 1: US30 Daily
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