This should hardly be news but sure enough the algos are reacting to headlines that China will unleash its $16 billion 25% retaliatory tariffs on 333 US products on August 23rd.
Tariffs are to be imposed on products including crude oil, coal, diesel, bikes and cars, and medical equipment.
China's MOFCOM says that it is "forced to retaliate" noting that "US tariffs are very unreasonable." and retaliatory tariffs are "to safeguard legitimate rights and interests."
Nasdaq futures are leading the drop for now.
The State Council Customs Tariff Commission issued an announcement to impose tariffs on imports of approximately US$16 billion from the United States.
August 8, 2018 Source: Office of the Customs Tariff Commission of the State Council
With the approval of the State Council, the Customs Tariff Commission of the State Council decided to list the tariffs on the US and Canada in the Notice of the Customs Tariff Commission of the State Council on the Tariffs on Imports of US$50 Billion Imports from the US (Announcement of the Taxation Committee  No. 5) After the appropriate adjustment of the second commodity, the tariff of 25% will be imposed from 12:01 on August 23, 2018.
According to the opinions of relevant departments, industry associations and enterprises, in order to protect the interests of domestic consumers and enterprises to the greatest extent, the list of taxable goods has been appropriately adjusted. The specific commodity range is about the State Council Tariff Commission on the origin of about 16 billion in the United States. The Notice of Adding Tariffs on Imports of US Dollars (Announcement of the Taxation Committee  No. 7) shall prevail.
Other matters are still implemented in accordance with the Notice of the Taxation Commission  No. 5.
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Ironically, while trade tensions are being ratcheting up, China’s trade surplus with the U.S. stood at $28.1 billion in July, close to the record-high in June, data released Wednesday showed.