- Markets Tumble As China Unveils Retaliatory Tariffs, May Dump “Some Treasuries”
by Tyler Durden, https://www.zerohedge.com/
After vowing over the weekend to “never surrender to external pressure”, Beijing has defied President Trump’s demands that it not resort to retaliatory tariffs and announced plans to slap new levies on $60 billion in US goods.
- CHINA SAYS TO RAISE TARIFFS ON SOME U.S. GOODS FROM JUNE 1
- CHINA SAYS TO RAISE TARIFFS ON $60B OF U.S. GOODS
- CHINA SAYS TO RAISE TARIFFS ON 2493 U.S. GOODS TO 25%
- CHINA MAY STOP PURCHASING US AGRICULTURAL PRODUCTS:GLOBAL TIMES
- CHINA MAY REDUCE BOEING ORDERS: GLOBAL TIMES
Here’s a breakdown of how China will impose tariffs on 2,493 US goods.
- 1,078 items to be subject to 20% of tariffs
- 974 items subject to 10% of tariffs
- 595 items continue to be levied at 5% tariffs
In further bad news for American farmers, China might stop purchasing agricultural products from the US, reduce its orders for Boeing planes and restrict service trade. There has also been talk that the PBOC could start dumping Treasurys (which would, in addition to pushing US rates higher, could also have the effect of strengthening the yuan).