Trump Approves China Tariffs but Asian Markets Aren’t Concerned

June 15, 2018
2345 Views

This Friday, the world learned that President Donald Trump gave the OK to apply almost $50 billion worth of tariffs on goods imported from China to the United States. The announcement was rumored earlier this week, but the final numbers were something of a surprise. Many analysts believed that the government would take a slightly relaxed approach to the latest round of tariffs. If you’re invested in Asia or even in nearby markets like Australia and New Zealand, then you will be able to breathe a sigh of relief knowing that  China tariffs has not had a notable impact on any major stock exchange.

International Investors Will be Pleased That Indexes are Relatively Stable

Despite China tariffs being expected at this point, there was still the potential for them to disrupt international markets. Investors who have direct holdings in foreign markets, or even those who have some stake through mutual funds, will be relieved to know that for the most part, indexes are sitting in the green today.

  • Close to the end of Friday trading, the Japanese NIKKEI index was up 0.6%.
  • The Hang Seng Index in Hong Kong was stable at 0.026% growth.
  • The Shenzhen SZSE index was down slightly at -1.36% but still within normal fluctuation range for the week.

Nearby markets in New Zealand and Australia were largely unaffected by the news and both stock markets were in the green at the end of Friday’s trading. The Australian XJO index was up 1.31%, while the NZ50GR was up 0.34%.

China Tariffs, Are Not the Tariffs to Worry About Today

Behind the European Union, China is the largest trade partner of the United States. The relationship is strained at times, but even with recent events, goods and materials still flow back and forth. This latest round of tariffs may not have any immediate negative impact on investors in either nation.

Note that while China tariffs are incoming, they have not yet been applied. Market confidence could change when these tariffs are levied.

For investors, this news is important to follow, despite the ‘trade war’ saga becoming tiring at this point. The true threat will come if there are any major changes in the North American trade situation (between NAFTA partners), which would have real implications for both Wall Street investors and the average business owner in the United States.

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
557 views
Economy
557 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
497 views
Economy
497 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
565 views
Economy
565 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…