Breaking story from Bloomberg
Risk trades are skidding on the headline that Trump wants to announce tariffs on pretty much all Chinese imports as soon as next week.
The comment period on the tariffs ends on September 6 and they can go into effect any time afterwards. The report says tariffs could be announced but wouldn't go into effect immediately..
The story cites six people familiar with the matter. One thing I would say is that with so many sources, it sounds like a deliberate leak and that might be to raise pressure on China to negotiate before they go into effect.
The same report says that some of the people cautioned that Trump hasn't made a final decision and that duties could come in installments rather than all at once.
The US has already hit China with $50 billion in tariffs and China has responded in kind. However China can retaliate on the remaining $60 billion of US exports then will have to find another way to fight back, possibly IP or making life tough for US businesses in China.
The report says talks last week between the US and China last week yielded few results.
The market reaction has been fairly modest given the importance of this news. USD/JPY dipped down to 111.03 from 11.20 but has bounced back to 111.08. Similar story in equities.
