China hits back
China will raise tariffs on US goods in response to the US measures implemented on Friday. Chinese officials had hinted that a response was coming and now we get the details.
Beijing plans to set import tariffs on $60 billion worth of US goods. The tariffs will range from 5%-25%. The goods at 5% currently will stay unchanged while others will ratchet up.
More importantly, reports also say China may stop purchasing US agricultural products and energy, cut Boeing orders and restrict US service trade with China. The Global Times reports that Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.
Headlines are just crossing but the Australian and Canadian dollars are down to session lows. US stock futures are falling, with S&Ps down nearly 50 points.
This is starting to look dire. Trump is dead-set on tariffs and China has decided it can take the pain. This is going to be a war of attrition unless once side comes back to the bargaining table.
More: Does escalation mean the end of a US-China trade deal?
