Just when investors thought trade war tantrums were ebbing…
Despite warnings overnight from Beijing that US should “not open pandora’s box” with regard trade tariffs, US Commerce Secretary Wilbur Ross confirmed on Bloomberg TV this morning that President Trump will announce sweeping China tariffs, aimed at countering IP theft, shortly.
The US “is not strong-arming” China, Ross argued, “we’re defending ourselves.”
This comment follows Reuters reports that China warned the United States on Thursday against sparking a flurry of protectionist practices across the globe, even as Beijing pointed to U.S. goods that it could target in a deepening Sino-U.S. trade dispute.
“The malicious practices of the United States are like opening Pandora’s Box, and there is a danger of triggering a chain reaction that will spread the virus of trade protectionism across the globe,” a commerce ministry spokesman said.
While stocks took an initial hit from AMZN, they are legging lower on the Ross trade-war confirmation.
Clearly aware of the impact the administration’s trade-war antics are having, Ross concluded his interview by urging investors to: “act rationally, not hysterically.”