- Height Capital Markets analyst Clayton Allen delivers some analysis on the surprise $200B tariff threat from President Trump against imports from China.
- "This move reflects Trump's belief that he has more political upside to waging a trade war, at least in the near term, since voter opinion appears to remain supportive of his actions," writes Allen.
- "This could change rapidly as consumer prices begin to increase or Chinese retaliation takes effect," he warns.
- "It is unclear how much further he can increase pressure without touching 'sacred cow' imports like cell phone handsets and pharmaceuticals. This move also highlights the inherent risk in Trump's strategy; he may be using these tariff actions as a tool to force China's hand, but he risks overshooting the mark and drawing the US into a trade war that is not easy to win."
- ETFs: SPY, QQQ, DIA, SH, SSO, VOO, SDS, IVV, SPXU, TQQQ, UPRO, PSQ, SPXL, RSP, SPXS, SQQQ, QID, DOG, QLD, DXD, UDOW, SDOW, VFINX, EPS, DDM, QQEW, QQQE, SPLX, SFLA, QQXT, SPUU, SPXE, UDPIX, OTPIX, RYARX, SPXN, SPDN, SPXT, SPXV.
- Now read: Is Another Drop Ahead For Tech Stocks?
Original article