Trump Approves China Tariffs but Asian Markets Aren’t Concerned

June 15, 2018
2197 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

These are the Biden Executive Orders Investors Need to Know About
Business
29 views
Business
29 views

These are the Biden Executive Orders Investors Need to Know About

Lamont J - January 22, 2021

Investors were positive about Joe Biden leading up to his inauguration, and the markets have remained strong since he was…

200 Million Netflix Subscribers Could Boost Stock
Investing
43 views
Investing
43 views

200 Million Netflix Subscribers Could Boost Stock

Adam R - January 21, 2021

Streaming company Netflix Inc. (NASDAQ: NFLX) has improved its position as one of the most powerful companies in the entertainment…

Total Oil Leaves Lobbying Group
Business
79 views
Business
79 views

Total Oil Leaves Lobbying Group

Becky H - January 18, 2021

Total SE (NYSE: TOT) is one of the world’s largest oil companies and one of the seven super-major oil firms…