China was quick to respond with its own round of tariffs on $60 billion in American products, which are planned to go into effect simultaneously on Sept. 24.
Silver prices traded in range as the dollar held its ground after the U.S. and China announced their latest round of measures in the escalating trade conflict. U.S. President Donald Trump said in a statement late Monday that the U.S. is slapping 10% tariffs on $200 billion worth of Chinese goods and that the tariffs would rise to 25% in January 2019.
Trump had previously warned that “if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports,” suggesting that tensions were on the rise.
Furthermore, China’s tariffs set for implementation next week are also lower than initially planned, implying that Beijing too will hold off until the U.S. lifts the levies in January. In a slow week for major U.S. economic data, investors looked ahead to the next Federal Reserve policy decision to be announced on Sept. 26.
However, some commentators suggested that investors had been prepared for the higher level of 25% that now will be put off until January, providing some months for officials to advance on negotiations. – Neal Bhai Reports (NBR)
