Dow plummets after China retaliation tariffs….

Day two of this new trade war between the US and China has ruffled feathers for buyers and sellers in the stock market, with the Dow Jones plummeting more than 600 points today:

FOX BUSINESS – U.S. Opens a New Window. stocks tumbled on Monday with the Dow Jones Industrial Average falling 617 points recovering from a loss of over 700 points early afternoon as trade tensions and rhetoric between the U.S. and China escalate.

The Dow and the S&P 500 lost over 2 percent, marking the worst start to May since 1970. The Nasdaq Composite lost over 3 percent, the worst start to May since 2000.



According to Yahoo Finance China says they will “never surrender” to external pressures.

Talking heads on some of the business new channels, like Fox Business, are suggesting that while this trade war will hurt the US, it will hurt China far worse.

I think the idea is that it will take some short-term pain to force China’s hand.

It’s also being reported that Trump hasn’t decided on implementing more tariffs on China:

President Donald Trump on Monday said he hadn’t yet decided about going forward with fresh 25% tariffs on $325 billion in Chinese goods. Speaking to reporters during an Oval Office meeting with Hungary’s prime minister, Trump said “I love the position we’re in” with China. Trump said he’d meet with Chinese President Xi Jinping at a G-20 summit next month in Japan and said that meeting could be “fruitful.”

We’ll see how all of this pans out. If there is pain, hopefully it won’t last long. But don’t hold your breath…

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kleindropper
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kleindropper

I believe Trump’s fate is already sealed for 2020. You can’t wipe out farmers for two years in a row and expect the backbone of your electoral base in the Midwest to remain loyal. Look at the midterms in IA and WI. These tariffs will have continued problematic impacts on the overall economy as well since almost every conceivable product you can think of either has a Chines component or raw material in it.

Lillie Belle
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Lillie Belle

Avatarkleindropper Well, gee whiz, when and how to do we break free of our dependence on China?

AT
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AT

Return to the Lochner era.
We can start by going back in time and murdering FDR in his crib.

Louisiana_Native
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Louisiana_Native

This liberal is really showing his colors, two years into his administration. #cruz 2024

sam
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sam

To date (Feb 2019) USDA has paid out $7.7 B to farmers to help offset losses for crops hit by retaliatory Chinese tariffs imposed in response to Washington’s tariffs on Chinese goods.

7 months – $7.7B…..I thought someone said trade wars were easy /s

Conserve 58
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Conserve 58

Gorka, DiGenova and Tensing interview.
https://youtu.be/MEoIuifVm40

David Jenson
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David Jenson

China is in a pretty good position right now to handle a trade war with Americans. This close to reelection all they have to do is scare voters. A world wide depression would erase all the good will Trump created with his tax cuts and deregulation. The goal needs to be zero tariffs between the US and other nations. Trump seems to be going the opposite direction.

tyman
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tyman

Thank you! They can easily wait it out for a year, and the economic costs are catastrophic.

Just because the US is doing well doesn’t mean that we will when the rest of the world dips into severe recession.

Trump’s resolve scares me….what if he’s wrong and China won’t cave.

Conserve 58
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Conserve 58

@David Jenson, You say, “The goal needs to be zero tariffs between the U.S. and other nations. Trump seems to be going the opposite direction.” I don’t remember any of the arm chair policy experts in here opining on how Canada, China and the E.U. have been making fools of us for decades by placing outrageous tariffs on our goods while we were charging pennies on the dollars in comparison. One example was Canada placing a two hundred percent tariff on our agricultural goods while we were charging them 2.5% on their goods.

Trump has seen this egregious discrepancy going on for decades and he’s the first president in recent memory that has the guts to call them on their unfair trade practices and to do something about it.

sam
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sam

Conserve 58Conserve 58

The US had a $12.5B trade “SURPLUS” with Canada in 2016, $8.4B in 2017, & $7B in 2018.

Don’t worry Trump doesn’t know what SURPLUS means either.

Canada has historically held a trade deficit with the US in every year since 1985 in net trade of goods, excluding services.

You would really do yourself a favor to educate yourself on the dairy tariffs. It’s a single page, well written & easy to understand.
https://www.brookings.edu/blog/up-front/2018/06/13/a-trumped-up-charge-against-canadian-dairy-tariffs/

Louisiana_Native
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Louisiana_Native

It’s his solution, that is the problem. Since when have conservatives supported tariffs??? It’s a liberal policy, and he’s a liberal President.

Louisiana_Native
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Louisiana_Native

He’s been going the opposite direction his whole life.

Louisiana_Native
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Louisiana_Native

4 things:
1. Tarriffs are NEVER a good idea, and has always been a liberal tactic.

2. Kavanaugh just sided with the liberals on the court.

3. I tried to tell people in the primaries, they were electing someone who is not conservative, and will turn on the voters.

4. Ted Cruz will be the next POTUS, and I will be totally vindicated in front of my friends, who lowered the bar for this idiot and voted for him.

tyman
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tyman

I like the way you think!

Kavanaugh…the biggest SCOTUS disappointment since Roberts.

David Jenson
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David Jenson

To think the GOP fought this hard for Kavanaugh just for him to perpetuate the progressives pollit bureau they’ve spent years conditioning in the courts into being.

rjp977
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rjp977

1, 2 and 3 are correct.

sam
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sam

Avatarrjp977
#4 would be fantastic, but unfortunately won’t happen til 2024.

Louisiana_Native
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Louisiana_Native

I agree

Louisiana_Native
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Louisiana_Native

You don’t think Cruz will get it? He was second in the primaries. He would have been first, if Kasich and Rubio wouldnt have pulled a coup in Florida. I will never forget what I saw in the primaries. Not to mention, after Trump got in office, he spoke condescendingly to the conservative wing of the party. I see right through his fake [email protected]

RKJames
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RKJames

Put the pedal to the metal Mr. President.

Louisiana_Native
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Louisiana_Native

Yeah, right into the creek lol

Landscaper
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Landscaper

Who’s this Avatarrjp977 jerk that trolls TRS giving people down votes BUT never comments?

sjmom
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sjmom

LandscaperLandscaper I’ve seen them but don’t know who they are. Most definitely a troll though.

Conserve 58
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Conserve 58

sjmomsjmom It appears that we have more than one leftist troll in here that act as if they know more about trade deficits and dealing with China more than the Trump administration does. It’s obvious by their apologetic tone and excuse making in support of China’s criminal acts toward this country. The T.D.S. is palpable.

tyman
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tyman

When Trump gives someone like Peter Navarro so much power, yes, I question how much Trump really knows about trade and tariffs.

I’ve been kicked around all day just for saying we shouldn’t underestimate the Chinese or overestimate Trump’s chances at getting them to capitulate.

This is a very dangerous game, that could have serious consequences. It just isn’t as simple as Trump and Navarro make it out to be.

Don Sutherland
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Don Sutherland

Trump, Navarro, etc., greatly misunderstand China. China sees itself as a great geopolitical power. It resents the humiliations it endured during 19th century and first half of the 20th century. It endured great struggles, hardship, etc., to return to prominence. Therefore, it is very unlikely to capitulate to terms that are decidedly skewed against it. Instead, it will insist on terms that are more reciprocal.

russ
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russ

Let’s just keep losing to China forever and have them steal everything from us…..

Did you think this was going to be easy????

David Jenson
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David Jenson

Hopefully it’s easier than the time Herbert hoover had with trade wars…

Conserve 58
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Conserve 58

Avatarruss clapping Your pertinent question goes straight to the heart of why we must be optimistically patient and give Trump’s handling of China the time it deserves to work. I don’t remember seeing this much besmirching of Obama while he was enabling the Chinese and George Soros to undermine our economy. It’s patently ridiculous to accuse Trump of not having our best interests in mind.

tyman
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tyman

Trump is an ego maniac. He doesn’t have time…the Chinese can easily wait it out for 18 months while the US economy goes down. Companies don’t like uncertainty, and they begin to scale back operations during times of uncertainty. Add a little bit of inflation due to declining production and you have a prime recipe for an economic slowdown and stock market correction that hurts Americans in the wallet.

All of a sudden, Trump’s re-election is anything but certain.

C.W. Smith
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C.W. Smith

Conserve 58Conserve 58

I don’t remember seeing this much besmirching of Obama while he was enabling the Chinese and George Soros to undermine our economy.

Where the hell were you? You must have had your eyes and ears sewn shut to make such a preposterous claim.

AT
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AT

“As you know, the last eight years, [Big Fed] borrowed more than it did in the whole history of our country. So they borrowed more than $10 trillion, right? And yet we picked up $5.2 trillion just in the stock market. Possibly picked up the whole thing in terms of the first nine months, in terms of value.”
-Donald Trump

Which, of course, means for this news OMG NOOOOOO!!!!! Now we’re in national debt again!

We live in truly stupid times.

I therefore dub an end to the Age of Information, and a beginning of the Age of Stupidity.

One4Life
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One4Life

Great buying opportunity! I am not loaded, but I bought some shares today to get in on the lower prices. I’m now a bit concerned I overdid it!!

Louisiana_Native
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Louisiana_Native

Your mistake was making a decision on tariffs. Long term, they are a terrible idea.

sjmom
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sjmom

The important thing is this is the first time any president has had the courage to squeeze China. It’s the only way to stop their unfair trade practices.

tyman
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tyman

sjmom, As I’ve been saying all day, the tariffs are going to be paid by American consumers. Trump keeps saying that China is paying us billions and billions of dollars, but it is simply untrue.

The tariffs are assessed to the importers, who then charge American consumers.

When people pay 25% more for everything from China, consumption will go down and that will cause an economic slowdown.

Trump isn’t squeezing China…they backed out of what they perceived as a bad agreement that would cause them to admit theft and unfair trade practices. They simply will not admit that nor will they submit to inspections to insure compliance with Trump’s trade deal.
Anyone thinking they will is simply not dealing with reality.

Eric
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Eric

We discussed this during a meeting at work today. We are seeing many of our vendors add a straight up charge for the Tariff to all of their quotes of an additional 5%. They are not adding the cost to the product per se, but to the overall cost. For example, if the quote is for $100, then the quote shows $100 PLUS 5% for the tariff, bringing the total to $105. Why only 5%? Because many of the vendors we use only use parts from China, so the price of their product hasn’t increased by a total of 25%, but only marginally so that a 5% increase will cover the cost of the 25% tariff on the parts that are sourced from China. Can we source parts from USA to meet our needs? Yes, but not entirely. Not until some of the larger companies build plants and create supply… Read more »

sjmom
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sjmom

I will pray your company, not only survives, but prospers.

Eric
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Eric

Thank you!

D Guest
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D Guest

I’m concerned how this will impact the election.

Teri Smith
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Teri Smith

In 2018 Trump said that trade wars are “good and easy to win.” Now’s the crunch time so I guess we will see.

tyman
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tyman

A trade war with China will not be easy to win. The Chinese can easily wait until next year.
If stocks fall and the economy slows, Trump won’t have to worry about winning a trade war…he’ll be out of office.

Teri Smith
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Teri Smith

My thoughts exactly. I didn’t believe it when he said it, and don’t believe it now.

tyman
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tyman

When I think of the good that Trump has done for Christians and regulation, I plan to vote for him.

But this trade war is a mess!

Louisiana_Native
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Louisiana_Native

I can already see. Since when did Republicans favor tariffs? This is such a bad idea.

Abe Lincoln
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Abe Lincoln

That left-wing guy named Ronald Reagan.

C.W. Smith
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C.W. Smith

And Reagan called that a mistake. Try again.

Ciceroni Excogitatoris
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Ciceroni Excogitatoris

Remember, our market is a multi-trillion dollar monster… no other country in the world has the purchasing power of the US. China’s wants to play rough because they’re finally being called out?

tyman
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tyman

Yes, as opposed to admitting to unfair trade practices. That will destroy their credibility on the global economic stage.

They cannot and will NOT do that.

Louisiana_Native
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Louisiana_Native

Since when have tariffs worked in the long term? I would like to know why a supposed “Republican” POTUS is using liberal policies (tariffs) for Christ’s sake??!! Name one positive from tariffs? Please, I cant wait to hear this one.

tyman
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tyman

LA Native, I’ve been dealing with this all day. I’m simply amazed that people who claim to be Republican / conservative have been so misguided and uninformed claiming that tariffs aren’t liberal policies.

Tariffs are taxes, and higher taxes are a liberal policy!

Abe Lincoln
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Abe Lincoln

Your approaching this in a way too simplistic manner.

tyman
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tyman

You’ve been making condescending comments all day (accusing me of failing to see this or that). I believe I have a fairly good understanding of economic issues as I not only work during the day, I actively manage my family’s investment portfolio. If anything, I see this issue as being far more complicated than Trump believes, yourself included. Trump isn’t really hitting the Chinese the way he claims, and they will NEVER do a deal with Trump that causes them to admit wrongdoing and to have inspections to ensure compliance with the US. American consumers are the ones paying the tariffs, not China; all the while Trump is bragging that China is paying billions of dollars that will go to farmers. US farmers are fed up with the tariffs. I believe soybean prices hit a 10 year low today. I’m sorry but it’s hard for me to take anyone seriously… Read more »

AllenSims
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AllenSims

China has more to lose in this than the US does. We can find other manufacturers far easier than they can find other buyers

tyman
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tyman

What if China quits buying US Treasuries? What if they get really upset, and start selling the Treasuries that they own?

It is not as simple as they have more to lose than we do.

Scope
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Scope
tyman
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tyman

I understand all of that, but the premise is based on the idea that a communist country would act in a rational manner.

It is just too risky to play chicken with a country like China.

Scope
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Scope

“I understand all of that, but the premise is based on the idea that a communist country would act in a rational manner”. WTF are you even saying. Because the ChiComs should not be expected to act in a “rational manner” is the excuse for allowing the ChiComs to behave the way they have? Oh, they are the ChiComs so we should just allow them to do as they do, because it is just far to risky that Americans wouldn’t get their cheap China products at WalMart? “It is just too risky to play chicken with a country like China.” Why? Because you cheap crappy chit from WalMart might cost you a few cents/dollars more? You brought up the possibility that China just might try to sell of their US treasuries. Now we are into cheap China chit sold in the US. Hey Bro, how about supporting more American manufacturing… Read more »

tyman
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tyman

What is up with the rude people on this thread today? It’s like economic bizarro world. I’m talking specifically about the article YOU posted about the Chinese selling US treasuries. So you think the Chinese have acted in an ethical and rational matter since they’ve joined WTO?? Since comprehension doesn’t seem to be your strong suit, I’ll try to be clear: I have NEVER said that I believe the Chinese should be given a pass to do what they’ve done. They have no ethics, and I absolutely CANNOT stand the fact that we are where we are with them as a communist trading partner. The trade war that Trump feels like he can win is a dangerous game, and the Chinese have been preparing for it LONG before he became President. The Chinese have been setting up factories and shops in countries like Vietnam, Bangladesh, etc. in anticipation of this… Read more »

Sentinel
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Sentinel

There IS pain… but what the heck, I didn’t ever want to retire… exclamation

Dr. Strangelove
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Dr. Strangelove

SentinelSentinel What do you mean? I can’t wait to retire on my generous $1603 a month SSI!

Covfefe
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Covfefe

This is not a “new” trade war, its the same one from last year but its just escalating further.

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