After months of threats and rumours and statements and frustrations, the USA VS CHINA trade war is about to get real.
The US President has announced that US would implement tariffs on $34 billion of Chinese imports on July 6. The Chinese administration has affirmed to respond accordingly on the same day, although they clarified that “no one wants a trade war.
China has said it will not “fire the first shot” but they made clear on Thursday that Chinese tariffs on U.S. goods would go into effect immediately after U.S. duties on Chinese goods be in force.
Chinese Commerce Minister said that tariffs would be adding tariffs on international supply chains, including foreign companies in China.
The tit-for-tat trade war saga has hit market sentiment in recent weeks. It is now at its peak as the deadline of the 6th of July is fast approaching.
TRUMP VS OPEC
The US President accused once more the Organization of the Petroleum Exporting Countries of driving gasoline prices higher. Trump’s tweet put pressure on the oil producer group to do more in order to reduce prices.
The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!
— Donald J. Trump (@realDonaldTrump) July 4, 2018
However, Iranian OPEC Governor accused Trump that his tweets have increased the oil prices by at least 10$ per barrel. He also says that Trump wants to cause tension between Iran and S. Arabia.
The leader of Saudi Arabia, OPEC’s biggest member, has assured Trump that the kingdom can raise oil production if needed. While Trump complains about OPEC, he discourages his allies to stop buying oil from Iran.
FOREX MARKETS ahead of USA VS CHINA Trade War
The dollar’s index against his six major-traded peers was 0.34 % lower, its lowest level in a week, ahead of the launch of the US-China trade war.
The Sterling rose to a one-week high following BoE comments for recovery. Traders cherished the hope for interest rate hike this summer although Brexit is always among the traders’ concerns.
The Euro increased close to 3-week peak after strong German industry data and hopes that USA-EU trade war will. German industrial orders soared in May after four consecutive months of decrease.
Oil prices soared to 3 and ½ year high as President Donald Trump warned OPEC to cut prices. However, potential supply reduction from Iran and Middle East cause concerns.
Sources: Reuters, CNN, bbc.com
PLEASE NOTE The information above is not investment advice.