Volatility spiked early last week after President Trump upended the expectation for an imminent trade agreement. After concluding that the Chinese were reneging on terms they had agreed to during earlier bargaining rounds, Trump opted to more than double tariffs on $200 billion in Chinese imports. This tariff increase to 25% from 10% took effect on Friday. The Trump Administration also began the process of expanding tariffs to cover an additional $300 billion in imports, leaving almost no products from China entering the U.S. without incurring a tax. In retaliation, the Chinese government yesterday announced plans to impose tariffs ranging from 5% to 25% on 5,140 U.S. products worth about $60 billion. It said the tariffs will take effect on
June 1st.
Click here to read our market commentary regarding U.S. and China Trade Negotiations.