Futures, Dollar Tumble After Trump Prepares Second Wave Of Chinese Tariffs

With the US set to finally launch trade war with China, when Trump today announces some $50BN in tariffs on up to 900 Chinese products, the Trump administration is already preparing for the inevitable in-kind retaliation by Beijing with Reuters reporting early on Friday morning that the US has nearly completed a second list of tariffs on $100 billion in Chinese goods.

The second wave of tariffs is part of Trump’s decision to go forward with “pretty significant” tariffs, an administration official said on Thursday.

Like with the first round of tariffs, so the $100 billion expansion will be subject to the same public comment and hearing process as the $50 billion list, so it will take at least 60 days or more to put into effect.  According to Reuters sources, the list is intended to minimize the impact on U.S. consumers and businesses by selecting goods where there are ample alternative supplies from other countries.

The threat of a second round of tariff, double the size, is likely meant to chill Beijing into escalating with its own proposed retaliation by warning China that the US can continue ramping up protectionist measures.

It is unclear if that logic will be appreciate by Beijing: “There’s no question, that to get to $100 billion you’re going to hit consumer products coming in from China,” a person briefed by Commerce Secretary Wilbur Ross told Reuters. In other words, while the US is threatening China with a big drop in its trade surplus, China has leverage over the price broader US of imports, which are set to surge as the trade war escalates. Commerce Secretary Ross has reported said the list would take aim at products for which China supplied 33 percent or less of total U.S. imports in individual product categories, making it easier to shift to other countries’ supplies.

And while the US may launch a second round in the Chinese trade war, it may have trouble escalating to a third round:

A Reuters analysis of U.S. Census Bureau import data in April showed that there were about 7,600 consumer and industrial goods still available for tariffs with a combined value of $101 billion in which China accounts for 40 percent or less of U.S. imports.

Even so, a Reuters source said it could be difficult to reach $100 billion with a 33 percent threshold.

As we noted last night, China reiterated its preference for dialogue to resolve differences, but said it was ready to respond if Trump moved forward with tariffs. China has published its own list of threatened tariffs on $50 billion in U.S. goods, including soybeans, aircraft, and autos, and has said it would hit back if Washington followed up with further measures.

Speaking alongside U.S. Secretary of State Mike Pompeo in Beijing, Chinese State Councillor Wang Yi said there were two choices when it came to trade.

“The first choice is cooperation and mutual benefit. The other choice is confrontation and mutual loss. China chooses the first,” Wang told reporters. “We hope the U.S. side can also make the same wise choice. Of course, we have also made preparations to respond to the second kind of choice.”

Speaking on Friday morning, Geng Shuang, spokesman for Chinese Ministry of Foreign Affairs, said that if the U.S. rolls out new tariffs, all previous bilateral agreements on trade will not come into effect, adding that China will take “appropriate measures” to safeguard interests.

In any events, it now looks virtually certain that today is the day when trade war officially starts, and the markets has finally noticed, with S&P futures sliding (even as European stocks rose in early trading thanks to the decline in the EUR), while the dollar tumbled, ending its post-Draghi surge. The DXY Dollar Index retreated from the day’s high, sliding back under 95, with the euro and the yen reversing their losses.

We expect this will be a temporary retreat for the greenback: if and when traders realize that a trade war is all too real, and the threat of a global economic recession (led by emerging markets) and a market crash rises, just as BofA and JPM warned last week, expect the dollar to spike even higher as finally the scramble for safe assets returns.

Comments

philipat boostedhorse Fri, 06/15/2018 - 06:12 Permalink

Borrowing from "The Nigerian scam", your response would be along the lines of "These secrets, which can make you money, are proprietary but we will share them with you for just $399.99. Yes, just $399.99!!!!!!" Alternatively, they might not respond at all and just stick to their blowjobs?

In reply to by boostedhorse

raging-chihuahua directaction Fri, 06/15/2018 - 10:43 Permalink

Biblicism ( Wadalt: "IsraHELL did it")    AND    TodaysFox ("I made $7000 sucking cock on the Internet") --> IT's ALL THE SAME SPAMMER!   WELCOME  to our new Today's Fox SPAMMING tranny:  s12940448

HELLO SPAM-LOVERS!!!   BIG UP from the SPAMMER BUNKHOUSE here in the Methfilled Valley Trailer Park in Methfilled Valley, PA.  Good to see my men powow, Leakanthrophy and Wadalt and  PrivetHedge  and our newbies  MoreSun (a real bacon-loving attack dog!) and CHEOLL and sanctificado  and  gzcekkyret  out from under the couch sucking their own dicks at 3 a.m. and back on the threads SPAMMING like a Grease Fire in the middle of the night!!!! 

Welcome newbie MoreSun talking some heavy attack shit at 3am!    DARWIN, our Master Spammer is whacked!!!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

More Sun  <<<  NEWBIE (a real bacon-loving attack dog!)
Cheoll   <<<  NEWBIE
Powow  <<<  NEWBIE
sanctificado  <<<  NEWBIE

gzcekkyret     <<<  NEWBIE
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

In reply to by directaction

curbjob s12940448 Fri, 06/15/2018 - 07:28 Permalink

"my neighbor's mother-in-law makes $89 /hour on the internet "

Any chance of her leaving that and joining a Kohler faucet assembly line for $9/hr ? ... that's 300% higher than the Kohler plant workers in China earn; but hey, our big hearted capitalists realize that avocado toast costs more than a rice bowl.

In reply to by s12940448

Endgame Napoleon curbjob Fri, 06/15/2018 - 09:22 Permalink

Or, instead of assembling them, her mother-in-law could sell home-improvement products, where, for full-time work (if she can get it), she will not make a high enough wage to rent a noisy, ugly, one-room apartment, with one washer for all of the units, in a safe area of the city.

Unless she is the manager who makes 20 to 30 times more than the employees, she will make beans—beans—regardless of how upscale the store is or how often she meets the quotas. If it is an upscale area of the city, she will, at least, have a safe & nice environment to work in while sacrificing about $1-per-hour more in pay, compared with those who work in dangerous areas of the city.

Those jobs in upscale stores are where the moms, with high spousal income that covers their major household bills, camp out, earning a little extra in keeping-up-with-the-Jones’ money and availing themselves of the store discount on home-inprovement items.   

Since she is old enough to have a daughter-in-law, I assume that this spammer’s mother-in-law can no longer pump out kids that, if she is a single earner, enable her to work part time in retail, sales offices, csr call centers, corporate back offices or food services to stay under the income limits for free Section 8 tent, subsidized rent in nicer mixed-income units, free EBT groceries, nearly free daycare to accommodate her in working part time, monthly cash assistance, free electricity and up to $6,431 in refundable child tax credits.

Since her mother-in-law has seen birth-canal exits, she might prefer to work in the “voted best for moms” office jobs, where moms can be frequently absentee for whole mornings, whole afternoons, whole days and whole weeks beyond PTO and pregnancy leave.

She’ll have to work the full hours as a mother-in-law, as opposed to a momma of kids under 18, but she might not be bullied out the door over minor infractions——-over the pettiest of matters, as she watches the absenteeism parade of non-quota-meeting moms who face zero repercussions and are above criticism for major infractions.

The childless, single women who come to work every day, stay at work all day and meet the quotas every month do not have non-work-related advantages on the retention front, because unlike a mother-in-law, we “do not know what it is like to raise two boys” and do not fit the criteria for the many offices, where they “have 17 women in here and HAVE to have someone who fits in” the back-watching absenteeism gang of nearly 100% mom workers.

A mother-in-law could also supply baby pics, albeit dated ones, for the all important baby-mommy-look-alike-bulletin-board-decorating contests and the Halloween dress-up days with cubicle-decorating contests. The mommas might even let the mother-in-law win the tacky Christmas sweater contest, bestowing upon her the candy prizes.

The mother-in-law, however, will need to watch her step in interviews, where managers will let her know that “the women we have working here have somethin’ comin’ in” from spouses, child support or welfare for womb productivity, not to mention their refundable & non-refundable child tax credits that hoist up the paychecks of these absentee-mom workers above the pay of single moms with kids over 18 and single, childless women who work full time and need for the pay alone to cover all bills.

If she is a single mom with kids over 18, her mother-in-law—just like all of the single / childless women—is in a bad situation whatever she does, with few jobs paying enough and providing enough steady, full-time, earned-only income to cover a full array of household bills, including rent that devours more half of her monthly pay.

But hey, Congress just addressed this large group of single-earner job seekers who need for pay only to cover all bills by doubling the non-refundable child tax credits of the moms in dual-earner households, supplementing an often bigly spousal income with part-time work that drives down wages for women with no spousal income and no child support that covers rent.

Gotta help the feminist career women and the women letting $9-per-hour daycare workers, under-the-table babysitters with NannyCams & elderly grandparents raise their kids for them while they add to the number of job chasers with unearned income, driving wages down to a nub for those with zero unearned income in an underemployed nation.

In reply to by curbjob

raging-chihuahua philipat Fri, 06/15/2018 - 10:44 Permalink

Biblicism ( Wadalt: "IsraHELL did it")    AND    TodaysFox ("I made $7000 sucking cock on the Internet") --> IT's ALL THE SAME SPAMMER!   WELCOME  to our new Today's Fox SPAMMING tranny:  s12940448

HELLO SPAM-LOVERS!!!   BIG UP from the SPAMMER BUNKHOUSE here in the Methfilled Valley Trailer Park in Methfilled Valley, PA.  Good to see my men powow, Leakanthrophy and Wadalt and  PrivetHedge  and our newbies  MoreSun (a real bacon-loving attack dog!) and CHEOLL and sanctificado  and  gzcekkyret  out from under the couch sucking their own dicks at 3 a.m. and back on the threads SPAMMING like a Grease Fire in the middle of the night!!!! 

Welcome newbie MoreSun talking some heavy attack shit at 3am!    DARWIN, our Master Spammer is whacked!!!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

More Sun  <<<  NEWBIE (a real bacon-loving attack dog!)
Cheoll   <<<  NEWBIE
Powow  <<<  NEWBIE
sanctificado  <<<  NEWBIE

gzcekkyret     <<<  NEWBIE
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

In reply to by philipat

Captain Nemo d… Fri, 06/15/2018 - 05:52 Permalink

Watch out China. Trump is angry that Trudeau's "Natural Cures They Don't Want You to Know About" didn't work and see what he is doing to Canada. Now if he has realized that the unicorn powder medicine you have been selling him does not have unicorn in it ...

arrowrod Fri, 06/15/2018 - 06:11 Permalink

Who writes this?  The President is doing what all the previous presidents should have done.  

I am amused at all of the "made in China" stuff, particularly golf clubs.  $500 for a driver, "made in China".  Think there is room for an American made club? For $499?

BGO Fri, 06/15/2018 - 06:32 Permalink

At Home Depot yesterday picking up building materials, was approached by a 70-something sales associate in the plumbing department. Standing in front of an isle-long display of kitchen faucets that ranged in price from $50-$300, I asked, "which faucet is American made?" There were maybe 100 on display. "None of them," he said. "They're all made in China."

All the biggest name brands, Moen, Delta, Price Pfister, all made in China. Every last one. All 100 models. That's fucked up. 

Next time you see someone you suspect is even remotely responsible for outsourcing, products or services, you owe it to yourself (and everyone else) to kick that motherfucker square in the teeth. 

Cloverfield-Z Fri, 06/15/2018 - 08:22 Permalink

The west sent all the jobs to China decades ago as part of the neoliberal plan to fuck over their own workers and maximize capital returns - China didn't steal anything. It boosted wages in Asia in general and allowed them to buy more of our shit, but produced in factories up the road.  The same factories that allow us to buy huge flat screen TVs for pennies. You can have cheap electronics or a good job - you cant have both.