The US has increased tariffs on $200 billion worth of goods from China. Now, $250 billion worth of Chinese goods will have a 25% tariff. President Trump has also threatened to impose a 25% tariff on the remaining goods from China. US companies haven’t supported the tariffs. Last year, companies including Apple (AAPL), Amazon (AMZN), Facebook (FB), and Alphabet (GOOG) opposed the tariffs. Earlier this year, Apple and NVIDIA (NVDA) said that China’s slowdown is hurting their earnings.
On May 10, in an early morning tweet, President Trump said, “We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!” Trump also came up with an innovative idea to tackle global poverty and starvation. President Trump said that with the $100 billion the United States would receive in the form of tariffs on Chinese goods, it would buy “agricultural products from our Great Farmers, in larger amounts than China ever did, and ship it to poor & starving countries in the form of humanitarian assistance.”
In a separate tweet, President Trump said that the money collected through tariffs on Chinese goods could go into infrastructure and healthcare. President Trump’s infrastructure plans haven’t taken off due to a lack of funds.
As the trade war continues to escalate, US stock market futures are pointing to a weak opening on May 10. The S&P 500 (SPY) has already closed in the red for four consecutive trading sessions.