...if this $500 billion madness is needed just to get to January 14, what madness will be needed come January 15? Our guess: Take the current number and double it. Then double it again.
Roughly $120bn in goods face 15% tariffs as of Sep. 1, known as “List 4A”. Tariffs on List 4A will be reduced from 15% to 7.5%. This would represent a roughly 10% reduction in Section 301 duties on Chinese goods.
The main focus now is watching the key government bond yields. We know from the past that when yields go up too much it creates a breaking point for equities. The average G7 10Y yield is 0.79% and the breaking point seems to be around 1.5%.
"The United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports."
