Stocks are sinking and bitcoin is moving higher as the US-China trade war appears to be escalating.
Stocks Slide as Trade War Bites
On Friday, President Trump’s administration raised tariffs on $200 billion worth of annual Chinese imports from 10 to 25 percent. Now, however, the President has said that he’s ready to impose 25 percent on yet another $300 billion worth of Chinese goods.
As such, investors are currently waiting for retaliatory measures from Beijing. China’s Chief Negotiator, Vice Premier Liu He, however, has demanded that in order to strike a trade deal, tariffs on Chinese exports to the US should be lifted.
A Monday op-ed published in the official newspaper of the Central Committee of the Communist Party in China does seem to be a cause for concerns:
China has been pushing forward the bilateral talks with a high sense of responsibility and maximized sincerity, but it will never yield to the extreme pressure from the US, or compromise on matters of principle.
Consequently, the Dow Jones Industrial Average…