Global stocks are continuing to fall as Wall Street ended lower this week. The main reason for this is the newly announced taxes that President Donald Trump imposed on Chinese goods. Oil also fell by 3% because investors expect Russia and Saudi Arabia output is going to increase soon.
Taxes
Trump announced new taxes on Chinese imports worth $50 billion. The new taxes will most likely start on July 6. Beijing felt forced to respond in kind, and concerns about a trade war between the two biggest economies in the world are rising.
Trump presented a 25% tax on important imports from China, including cars. He promised that if Beijing strikes back, then he will take further measures. Trump has been trying to close the trade gap with China. We import more of their goods than they do of ours.
Michael O’Rourke is a chief market strategist at Jones Trading. He said that investors are concerned about an escalating trade war and that it’s better to sell out and take your profits now.
Stocks Falling
Soybeans fell by 2.5% and hit their lowest price since June 23, 2017. ICE cotton also dropped.
