Stock markets across Asia were set to decline at the open on Monday as the latest round of U.S. and China tariffs kick into effect.
Futures pointed to a lower open for the Nikkei as well as for the Australian market.
China is using delay tactics in negotiating a better trade deal with the U.S. but that strategy looks to fail with the U.S. imposing tariffs on September 1, 2019. The Chinese, instead of negotiating a better trade deal for the U.S., hit back with tariffs on $75 billion of mostly farming products in an attempt to kill Trump’s support across the farm-belt.
It’s clear that China is not a trading partner but instead a hostile communist country hell-bent on controlling the world. China may just be the most radical regime since the USSR.
Clearly the Chinese are willing to burn down the world to preserve their $550 billion annual trade surplus with the U.S.
Traders will watch for reaction to the tariffs by both Washington and Beijing that went into effect on each other’s goods over the weekend. U.S. tariffs went into effect Sunday on $112 billion of Chinese imports, while Beijing also began imposing tariffs on $75 billion in U.S. goods.