Trending: Vanguard To Eliminate Trading Commissions On Majority Of ETFs To Please Investors
The U.S. has already imposed levies on $30 billion worth of Chinese imports, in addition to previous tariffs on aluminum and steel. In a move that further shocked China, the Trump administration said it is preparing to slap a 10% tariff on additional $200 billion worth of Chinese imports. If the U.S. delivers on its threats, the total value of targeted imports would surge to $450 billion, close to the $505 billion goods China is sending to the U.S. annually.
The tariffs have seemingly rattled not only the Chinese markets and the renminbi but also global markets, particularly those with high exposure to China. Semiconductor ETFs have been particularly hit, with ProShares Ultra Semiconductors (USD B) falling 11% in the past 30 days.
The new round of levies has drawn condemnation from some American officials who had supported previous tariffs. Senate Finance Committee Chairman Orrin Hatch said the move seemed “reckless,” adding he favored the start of negotiations on a bilateral trade deal that is “fair.”
Crude oil had been set for a strong week, but Wednesday’s news of a hike in supply from Saudi Arabia sent the black commodity down. United States Oil Fund (USO A) fell 2.4% on Wednesday, bringing weekly gains into negative territory. (USO A), which saw its traffic rise as much as 158% in the past five days, remains up more than 12% for the rolling month.