Posted by moy23 on 6/19/2018 7:28:00 AM (view original):
Tariffs (or the threat of them) is doing EXACTLY what Trump wanted.... Applying pressure on China and Europe to make better deals.
Global stock markets fell sharply on Tuesday after President Donald Trump threatened to impose an additional trade tariff on $200 billion worth of Chinese goods.
Following that bombshell, Chinese stock markets closed sharply lower. The volatile Shenzhen fell almost 6 percent, while the Shanghai Composite neared a two-year low.
European stocks followed suit and by mid-morning in London, the pan-European Stoxx 600 was 1.1 percent lower with every sector trading in the red.
Pair that with this:
China's central bank unexpectedly injected 200 billion yuan ($31 billion) in medium-term funds into the banking system on Tuesday in a move analysts said reflected concerns about liquidity but also the potential economic drag from a full-blown trade war.
China imported $129.89 billion of U.S. goods last year, while the U.S. purchased $505.47 billion of Chinese products, according to U.S. data.
Derek Scissors, a China scholar at the American Enterprise Institute, a Washington think tank, said that means China will soon run out of imports of U.S. goods on which to impose retaliatory tariffs.