Trump: Will need to raise tariffs on China goods coming into the US

In a TruthSocial post from Donald Trump, he says that tariffs will need to be raised on China goods coming into the US as a result of China’s recent export controls on rare Earth’s.

A summary of bullet point format:

• China’s move: China has sent letters worldwide signaling intent to impose export controls on rare earths and other production elements, even those not manufactured in China.

• Global reaction: Other countries are angry and alarmed, viewing this as sudden trade hostility that could disrupt markets globally.

• Surprise factor: The U.S. relationship with China had been positive over the past six months, making this move especially unexpected.

• China’s strategy: Seen as a plan to build a monopoly over rare earths and magnets, holding the world “captive.”

• U.S. stance: The U.S. also holds stronger monopoly positions in other areas, which haven’t been used — but now may be deployed in response.

• Presidential response: Trump has not spoken with Xi, canceling plans to meet at APEC in South Korea; considers the timing hostile, especially as it coincided with a peace breakthrough in the Middle East.

• Potential countermeasures: U.S. preparing financial responses, including a massive increase in tariffs on Chinese goods and other measures under review.

• Outlook: While potentially painful, Trump frames this as ultimately a long-term positive for the U.S.

The US market is not take it well with the NASDAQ index down 272.2 or -1.19%. The S&P index is down -56.50 point or -0.84%, while the Dow industrial average is down -285.2 or -0.61%.

US yields are lower with the 10 year yield down -7.7 basis points at 4.070%. The two-year is down 5.4 basis points at 3.545%

This article was written by Greg Michalowski at investinglive.com.