A post and a confirmation from the White House a little later was enough to throw the Wall Street Again in uncertainty: Donald Trump from midnight, New York time, will impose cumulative duties 104% in China.
Until that time, a balanced climate on Wall Street, it was overthrown, the S&P 500 lost 4% in a short time and the anxiety about the impact of duties on the markets and on the global economy made its appearance again, leading to the fourth consecutive US stock market.
Volatility and intense fluctuations shortly after the news turned into a rapid dip in the last hour of transactions, with Dow Jones closing with a loss of 0.84%, O S&P falling by 1.47%and Nasdaq sliding 2.15%.
What was it that turned the climate?
Donald Trump had warned that the duties he announced on April 2 would not have to lead to retaliation from US trade partners would otherwise return to new duties.
Thus, China’s response to the announcements of the day of liberalization for sweeping mutual duties, with 34%US contributions, brought about a new reaction from the White House leading the ongoing trade war to new levels.
The new duties of 104% mean that the cost of Chinese imports are going to double in less than 12 hours. Even if there is a prospect of agreements with major trade partners such as Japan and South Korea, China remains a very big deal for the US economy. Last year, bilateral trade reached $ 582 billion. Japan was at $ 228 billion, while South Korea at 19 billion dollars. China was the number 2 source of imports for the US last year, after Mexico, to about $ 439 billion.