President Trump announced Thursday, August 1 that he was planning on implementing additional tariffs of 10% on China.
And so in our August Special Report, Trading Strategies: Dog Days of Summer, we dig into that more.
...during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%...— Donald J. Trump (@realDonaldTrump) August 1, 2019
So, with the potential for tariffs to be enacted on Sept. 1, how should investors react?
Real Money's Stephen Guilfoyle weighed in on how consumers could be impacted.
"[Investors] should then prepare for another rate cut [from the Federal Reserve] in September because that will certainly be a drag on growth. So far the consumers really have not been heard to the degree that was expected when we first entered into this trade condition with the Chinese. But now that your condition will be exacerbated. Certain companies, we've already seen in this earning season, tremendous outperformance by U.S.-focused firms over international focus firms and that gap will only expand. The poor Caterpillars (CAT - Get Report) and the Boeings (BA - Get Report) , and the John Deeres (DE - Get Report) of the world. They are going to have a problem because industrial type firms that do more than 40% of the business overseas are going to have an issue," said Guilfoyle.
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