Several market indicators on Wall Street were down on Monday morning, signaling a continued downward spiral in the wake of President Donald Trump’s threats to impose more tariffs on Chinese-made goods by September.
Trump made the threat late last month in a tweet, pointing to his frustrations over failing to procure a trade deal with Beijing. Without such a deal, Trump promised to impose a 10 percent tariff on $300 billion of goods imported from China, on top of the existing 25 percent tariffs that are presently affecting $250 billion of goods from that country.
The initial tweet from Trump last week resulted in the Dow Jones Industrial Average to drop by hundreds of points, previous reporting from HillReporter.com noted.
👀The stock market is going to open with a large gap down. 👀 pic.twitter.com/Lp5WYtR3du
— Steve Burns (@SJosephBurns) August 5, 2019
Over the weekend, China reportedly retaliated against the tariffs over the weekend by devaluing its currency. The nation’s bank said the devaluation of the Chinese yuan was “due to the effects of unilateralist and trade-protectionist measures and the expectations for tariffs against China.”
A weaker yuan would, in theory, make the sting of the tariffs less painful, reported The Street, though it does hurt the country in different ways.
China also retaliated against the possibility of tariffs from Trump by encouraging state-owned companies to stop importing U.S. agricultural goods.
The actions taken by China resulted in dire predictions for the New York Stock Exchange. Indeed, when the opening bell rang, the Dow Jones was down by 410 points, and dropping still as of press time. The Nasdaq was down 2.2. percent at opening, while the S&P 500 went down by 1.4 percent, CNBC reported.
The president has touted the stock market, at times, as proof that he has presided over a prosperous economy, but with this latest round of talk and retaliations, many Americans may begin to question Trump’s aptitude for producing flourishing economic conditions.
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Chris Walker is a freelance writer based out of Madison, Wisconsin. A millennial with more than a decade of journalism experience, Chris aims to provide readers with the latest and most accurate news of national importance. Chris likes to spend his free time doing activities in his community with his family.