As Charles Schwab’s Liz Ann Sonders points out, this rift between President Trump and China is no longer just a “skirmish.” | Source: Shutterstock
By CCN Markets: China had to see this one coming. After China President Xi Jinping revealed his intentions to slap fresh tariffs on $75 billion in U.S. goods, President Trump raised the stakes, revealing in a tweetstorm that two could play that game. He decided to increase the tariff rate on $250 billion worth of Chinese goods to 30 percent from 25 percent. In addition, whatever was left on the $300 billion tariff list for Sept. 1 will now see a rate of 15 percent instead of 10 percent.
For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight….
— Donald J. Trump (@realDonaldTrump) August 23, 2019
As Charles Schwab’s Chief Investment Strategist Liz Ann Sonders points out, this rift between the U.S. and China presidents is no longer just a “skirmish.”
Anyone out there still calling this a “skirmish?”
— Liz Ann Sonders (@LizAnnSonders) August 23, 2019
Stocks were already reeling before Trump’s tweetstorm, and now investors have the weekend to dread how bad things will be at the market open on Monday. Instead, investors have begun to turn their attention to a couple of other asset classes, including bitcoin – which seemingly is on its way to becoming a safe-haven asset – and established safe-haven asset gold. Those who haven’t done so yet would notice that bitcoin and gold are trading in the green.