China is retaliating.
China's announcement that it will impose tariffs on $75 billion worth of goods, with 25% tariffs on American automobiles set to go into effect December 15. Some of the other tariffs could go into effect on September 1. China wants to put 5% tariffs on U.S. crude oil and soybeans.
In early August, President Trump threatened 10% to 25% tariffs on $300 billion worth of Chinese manufactured goods that would go into effect September 1.That would intensify a trade war that's already in full swing, with many U.S. companies already having noted in May how they plan to mitigate existing tariffs. Trump then pushed back the implementation date to December 15.
Nonetheless, China has decided to match the White House on its desire to play hard ball on trade.
U.S. Investors, afraid the economy is inching closer to recession on account of the trade conflict, have priced in more interest rate cuts from the Federal Reserve, with the S&P 500 still up 16% year-to-date, albeit falling Friday. The 10 year treasury bond is yielding a measly 1.6%.
Jim Cramer and TheStreet Launch Bull Market Fantasy Channel on Maven
Catch Up: Today's Top News Videos Below