US China trade tiff continues

The stage is set for another round of U. S. and China trade tussles. The events started when the US President decided to increase tariffs on some Chinese exports. There were some initial hints that President Trump was easing off on trade tensions, but that was all in the past. This new tariff hike comes in addition to an earlier 25 percent tariff rate. Allowing the President's policy to play out on the international trade scene, the Chinese government has now stated that they will be adding their own tariffs on certain items from the U. S. The President of the US announced the latest tariff on Chinese imports. But this was not the first time he had done this. The Chinese government responded by imposing their own tariffs. The Chinese government is now setting their sights on raising tariffs up to 15% on some U. S. goods.

This back-and-forth has been causing quite a stir in the market. People are worried that this could slow down economic growth. Meanwhile in US, the stock yields dropped, with the 10-year Treasury yield dropping on Tuesday. The yield on the 2-year Treasury dipped too. Traders were looking at global trade tensions and waiting on new economic data. How high can these tariffs go? Will the economy be able to keep up? The economic report for January is set to release Friday. It will give everyone a clearer picture of the employment situation in the US. The market was a bit relieved Monday when Trump put a pause on the tariffs on Mexico and Canada for at least 30 days. They agreed to help with the opioid situation in the US. How will this all play out? You can start to get some answers on Friday.

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