Tariffs, Tariffs, Tariffs, Rates

Daniel Shainberg

September 18, 2018

Today's highlights from Reuters and Bloomberg show the expected blowback from Trump's latest tariff salvo:

• CHINA SAYS NEW TARIFFS ON U.S. GOODS EFFECTIVE SEPT 24
• CHINA TO LEVY TARIFFS ON $60B U.S. GOODS
• TARIFF RATES RANGING BETWEEN 5-10% ON U.S. GOODS
• 5,207 U.S. PRODUCTS, UNCHANGED FROM INITIAL PROPOSAL

China also said that if the US insists on raising tariffs rates on Chinese goods (from 10% to 25% or more), China would respond accordingly, but noted that it hopes to stop trade frictions and hold a constructive dialogue.

The news of tariffs and political jockeying in anticipation of the predictable dialogue denouement is misleading the investment community. The only thing I would be focused on with all the corporate and sovereign debt in the system is this chart:

U.S Treasury Yields Spike to 4-Year High

Dan Shainberg
#DanShainberg
#RecessionResister

@DanShainberg