Industrial stocks sank Friday morning after the Trump administration announced new taxes on $50 billion worth of goods imported from China.
Boeing was down about 1.8% at the time of writing, and Caterpillar was down 2.4%.
“This list was compiled based on extensive interagency analysis and a thorough examination of comments and testimony from interested parties,” the office of the US Trade Representative (USTR) said in a press release.
“It generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025″ industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles.”
Automaker stocks also fell slightly, in line with broader benchmark indexes like the Dow Jones Industrial Average, which was down about 0.7% at the time of publication.
GM fell about 0.8% and Fiat-Chrysler was down 1.4%, while Ford was down just 0.2%.
The US Trade Representative’s office says the tariffs will come in two parts.
The first section will be implemented on July 6 and apply to 818 goods with a total value of $34 billion. The second set, which includes 284 goods equal to $16 billion worth of imports, would come later and be subject to additional public comments.
China’s government has already promised that retaliation is imminent. A statement from the Chinese Ministry of Commerce said that the country would implement tariffs on a similar scale on US goods.
Friday’s announcement is also widely seen as a “significant escalation of the trade war,” according to experts. You can read more about the potential repercussions here.
Bob Bryan contributed to this report.
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
