The trade wars between the United States and China have on recent past worsen than expected.
ON Friday, China government has imposed tariffs on soybeans, automobiles and other products valued at $75 billion. The announcement by President Xi of China surged the stock market which resulted in Trump administration responding.
On Friday, when the market closed, the Dow Jones Industrial Average, S&P 500 and Nasdaq fell to 2.4%,2.6%, and 3% respectively.
In response, in a series of tweets on Friday, Trump has now asked US companies to start considering other markets apart from China.
The United States of America has planned to scale the tax rate to 30% from 25% of Chinese products currently valued at $250 billion effecting on 1 September and second patch of $300 billion currently taxed at 10% to be increased to 15% starting 1 October.
President Trump has termed both chairman of Federal reserve and President Xi as “enemies of the economy”.
Chairman of Federal Reserve Powel has continually refused to reduce the interest rate as asked by Trump. Trump has been suggesting for a decrease in interest perhaps to keep the economy stable.
The trade war is tightening as the 1st effect of the tax is being imposed on Chinese products on 1St September.
A lot is being speculated, among them US recession.