The United States Announced Tariffs On China's $550 Billion Commodity. The Chinese Side Responded Strongly: It Will Take Its Own Course.

Original title: Trump "overweight"! The United States announced tariffs on China's $550 billion commodity. The Chinese side responded strongly: it will take its own course. Who is the Chinese counterattack? "

Looking at the US president's constant views on twitter, there are indications that he is truly as an American psychologist has said: cognitive ability is declining and mental state is deteriorating. In August 24th, the US side announced that it would raise tariffs on Tariffs of about $550 billion on China's exports to the US, and Trump was "furious."

A spokesman for the Ministry of Commerce issued a statement on the US side's announcement of further raising tariff rates on goods exported to China.

On the afternoon of August 24th, a spokesman for the Ministry of Commerce issued a statement on the US side's announcement that it would further raise tariffs on Chinese exports to the United States. In August 24th, the US side announced that it would raise tariffs on Tariffs of about $550 billion on Chinese exports to the United States. China firmly opposes this. Such unilateral, bullying trade protectionism and extreme pressure act, contrary to the consensus of heads of state of China and the United States, violating the principle of mutual respect, equality and mutual benefit, seriously undermining the multilateral trading system and the normal international trade order, and will surely take its own fruit. China strongly urges the US side not to misjudge the situation, do not underestimate the determination of the Chinese people, and stop the wrong practices immediately, otherwise all the consequences will be borne by the US side.

Trump couldn't sit still. Twitter was crazy about firing.

During the fall of US stocks on Friday, Trump fired 12 twitter.

First, before Federal Reserve Chairman Powell delivered a speech on monetary policy on Friday night, Trump tweeted repeatedly hinted that the Federal Reserve would cut interest rates: "the Federal Reserve, you can make a move." But Powell did not seem to play according to Trump's "script". In his speech, Powell said that the current trade tensions and other multiple problems caused global economic growth to slow down. Although the US economy is still healthy, it is still facing major risks and will take appropriate actions to maintain the growth of the US economy. In the end, Powell did not explicitly say that he would "cut interest rates".

"As usual, the Fed has done nothing." Powell's speech has just ended, Trump "first to respect". A few hours later, Trump continued to send twitter, "we have a very strong dollar and a very weak Federal Reserve." I will cooperate well with them. The US economy is strong, but only the Fed. "

It may be the realization that the Fed does not "bird" itself. Trump can only turn to "muzzle": "we do not need China. I now order that our great American enterprises immediately stop purchasing from China and return to the United States. " Trump announced his "administrative directive" in twitter. He appealed to us enterprises to find a "alternative plan" for business in China as soon as possible. Of course, Trump's Twitter does not have any administrative effect, nor does he have the right to prevent us businesses from doing business with China.

The Fed does not cut interest rates, China plus tariffs... Trump was sneer at his old opponent, the Democratic Party: "Dow Jones is so down, it may be a reaction to Morton's withdrawal from the campaign." It has been reported that Morton, a Democratic congressman who had announced his candidacy for the 2020 US presidential election, officially announced the election campaign.

Who is the Chinese counterattack?

After the introduction of the Chinese counter measures, Navarro, the white house trade consultant, declared that the scale of the Chinese Anti tariff is "not the stock market should be worried". But the fact is that the three major indexes of the US have dropped down after the opening of the stock market. Meanwhile, oil shares and auto stocks have been falling down. This is the market's concern about the escalation of Sino US economic and trade frictions.

There is no winner in the trade war, and many Chinese and American business people have a clearer and deeper understanding of this. Therefore, in the face of the US president's "ordered" US business immediately started looking for alternatives to Chinese products, the American Chamber of Commerce refused for the first time. Myron Brilliant, executive vice president of the US Chamber of Commerce, called on the US and Chinese governments to return to the negotiating table, saying that "sustained constructive cooperation" is the right direction. At the same time, many American factories in China say they have to pay more customs duties for a number of landed goods, which not only increases the cost of the enterprises, but also increases the expenses of the American residents. In addition, in the main soybean producing areas and pig breeding areas of the United States, farmers and pig farmers are complaining constantly. The continuous backlog of agricultural products and the difficulty of capital withdrawal will cause devastating effects on farmers and rural areas. LanceDodes, a psychology expert in the United States, said Trump's recent behavior showed his cognitive decline and mental deterioration.

According to the futures Daily reporter, the American Chamber of Commerce and major trade associations such as retail, automobile, petroleum and agriculture have issued a statement, warning that the escalation of trade disputes between the US and China will have an adverse impact on relevant industries, enterprises and consumers, and urge the US and China to return to the negotiating table as soon as possible and conclude an agreement to end the trade dispute. Myron Brilliant, executive vice president of the US Chamber of Commerce, said in a statement that the escalation of trade disputes between the United States and China has brought enormous pressure to the US economy and does not want to see further deterioration in Sino US relations. The National Committee of the US China Trade Commission issued a statement that relevant industries, enterprises and consumers in the United States would be hurt by the aggravation of trade and investment tensions. Some market organizations believe that the intensification of Sino US trade friction is not conducive to the smooth operation of the global economy. In the future, if the global economy is to be warmer, the Sino US trade frictions must be eased.

In the face of what is inevitable, investors should not panic and not blindly follow.

Guangxi Nanning senior futures trader Lao Shu believes that Sino US trade game is by no means accidental, and both sides may have made the worst risk assessment. Just like a two sides playing chess, it will ultimately depend on who can calculate farther. In the face of a great change in the market, the job that investors can do at present is not to panic or to follow blindly.

"Over the past year or so, the Sino US trade issue has changed significantly over the past year or so. Last year, every news about Sino US trade came out, and the domestic A share market was far more vulnerable than the US stock market. Now, things are going in the opposite direction. " The head of an investment institution in Chongqing told the futures Daily reporter.

On the whole, the Sino US trade friction is going on over time. Because the two countries' economic and financial markets are in different stages, they will give China greater initiative on the margins, and the Trump administration's position will be more passive than before. This is a major premise for understanding the current situation. Of course, any form of short-term conflict escalation is not welcome in financial markets, because it may damage the prospects of global economic growth.

Chief economist of CITIC futures and investment, Tian Ya hung, said that the purchase of soybeans in China has basically ceased. As soybean imports and meat imports are developing towards diversification, the market's previous worries about domestic vegetable oil and soybean meal supply have not increased. In the short term, the probability of higher prices of domestic oils and fats, especially soybean oil and soybean meal, is greater, but the extent is controllable, and there is no substantial new favorable situation in the market.

Beijing senior futures investor Lao Hu suggested that investors hold gold and other precious metals long positions. In addition, Fed officials say they will act as appropriate to maintain economic expansion, which will be beneficial to gold prices. The Fed has two main tools: quantitative easing (QE) or interest rate cuts. These two tools will lead to higher gold prices. The intensification of trade tensions may also mean that there is no solution in the short term, and conflicts continue. Some investors will sell risky assets to buy gold.