China Has Arsenal of Non-Tariff Weapons to Hit Back at Trump
Donald Trump’s threat to impose tariffs on an additional $200 billion of imported Chinese goods could see China retaliate with a wide range of non-tariff barriers. Because China only imports around $130 billion worth of goods from the U.S., its ability to match the tariffs dollar-for-dollar is limited. The U.S. imported $505 billion of goods from China last year. While China may jack up existing tariffs beyond the 25 percent level imposed so far, it could also inflict significant pain by increasing regulatory oversight of American companies, slowing down approvals processes, canceling orders for U.S. goods or encouraging consumer boycotts. Big American companies including Walmart Inc. and General Motors Co. host large operations in China and have plans for expansion that could be stymied. China has used these tactics before, notably against South Korea and Japan during previous political spats, with carmakers from the two nations among the victims. Read More @ https://www.bloombergquint.com/china/2018/07/11/china-has-arsenal-of-non-tariff-weapons-to-hit-back-at-trump
‘Shocked’ by Latest U.S. Tariffs, Beijing Seeks Retaliatory Action – China can’t match Washington’s new tariffs as it has in previous rounds, so it is reviewing plans to hit back in other ways
BEIJING—The U.S.’s plan to wallop China with new tariffs is putting Beijing in a bind, forcing it to retaliate in ways likely to cast doubt on its commitment to rules-based global trade. Read More @ https://www.wsj.com/articles/shocked-by-latest-u-s-tariffs-beijing-seeks-retaliatory-action-1531313522?mod=pls_whats_news_us_business_f
WHAT IS THE USD INDEX SAYING?
USD is back – Trump’s Trade War Sinks China’s Yuan Most Since 2015 Devaluation Read More @ https://www.bloombergquint.com/markets/2018/07/11/trump-s-trade-war-sinks-china-s-yuan-most-since-2015-devaluation. Wedge remains for the USD for another rise if tonight the CPI rises – which most analyst are predicting.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 9.00am – Australia – Expectations of future inflation can manifest into real inflation, primarily because workers tend to push for higher wages when they believe prices will rise; little or no volatility.
- 2.00 – 2.45pm – German and France CPI data – expected to be good.
- 7.30pm – ECB Monetary policy – we are expecting a hawkish statement from ECB. We stay neutral for EURO till the meeting is over.
- 8.30pm – Critical CPI data release – expected a little rise – we expect good volatility in the market. We are cautious over buying USD for now.
The market is truly unpredictable these days as Trump goes head on anytime and anywhere in his policies; be cautious and always has money management in place.
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