US Equities Plummet, Gold Soars Following Chinese Tariffs

New York (Aug 24)  On a day when many analysts expected Federal Reserve Chairman Jerome Powell to be in the spotlight it was in an announcement by China that they would begin retaliatory tariffs against products they import from the United States, as well as tweets in response to the Chinese announcement by President Trump that sent the financial markets reeling in the United States.

According to CNN, “The US-China trade war ratcheted up yet again on Friday, with Beijing unveiling a new round of retaliatory tariffs on about $75 billion worth of US goods. China will place additional tariffs of 5% or 10% on US imports starting on September 1st, according to a statement posted by China's Finance Ministry. The Ministry also announced plans to resume tariffs on US imports of automobiles and automobile parts. The tariffs would be 25% for vehicles or 5% on parts, and would take effect on December 15th. The new tariffs will target 5,078 products, including soybeans, coffee, whiskey, seafood and crude oil.”

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