Here is the announcement on Us President Trump's next round of tariffs on imports from China
Headlines via Reuters: :
- Trump administration to impose tariffs on approximately $200 bln worth of imports from China effective Sept. 24 - senior administration official
- Tariff rate on $200 bln list will start at 10 pct, go up to 25 pct at end of year
- Smart watches, bluetooth devices removed from tariff list; bicycle helmets, baby car seats, safety gear also excluded
- Chinese chemical inputs for manufacturing and textiles and agriculture eliminated from tariff list
- Trump administration remains open to negotiations with China, but no details on talks available
- Trump administration is seeking systemic changes from china, Beijing has not seriously engaged on that
- Trump administration does not want to constrain China's growth, development
- USTR has removed about 300 product categories from tariff list and has cut some subsets of products, but total value still "approximately $200 billion"
- USTR will keep many internet router products from 85176200 tariff code on China tariff list, will eliminate some consumer products
This announcement (that it was coming) was well flagged, from last week, with the timing (approximate timing) announced earlier in the US afternoon. So the surprise is minimal. hence the muted market impact on the announcement.
Gold had risen a few dollars during US time, AUd/USD had dropped a bit lower. Pre-announcement moves will blunt the impact.
Still, the announcement now sets up the trae session ahead, rallies in AUD should be offered, for example.
As I post AUD/USD if off circa 20 points. Not much.
Now the wait begins for Chin's retaliation efforts. These have not been preannounced but as I just posted (here) I expect we will begin to see a renewed weakening trend in the yuan at the reference rate settings ahead.
