President Trump to hold a meeting with top advisers regarding the December 15th tariff hike

With the next round of tariffs by the United States right around the corner (December 15^th), the commerce ministry of China announced on Thursday that it is in constant communication with authorities in Washington. The ministry, however, didn’t express the specifics of its plans regarding retaliatory steps in an event that the U.S raises tariffs on Chinese products again.

December 15^th Will See An Increased Tariff On $160 Billion Worth Of Chinese Products

On Sunday, the U.S can be expected to impose tariffs on Chinese products including computer monitors, gaming consoles, and toys. Imports worth $160 billion are likely to face the higher tariffs.  

As per the sources, President Trump has called a meeting with his top advisors later on Thursday to decide on the tariff hike of December 15^th. In an event that the U.S proceeds with the new tariffs, the global financial markets will potentially be hit hard, according to the analysts. Such an event could also stretch the ongoing trade war between the two largest economies further.

Earlier this year in October, the U.S and China had concluded the phase 1 deal, however, owing to the complications raised in November and December, including Trump’s official support for the pro-democracy protests in Hong Kong, China’s demand of a rollback on the previously imposed tariffs, lack of agreement on Chinese purchase of American agricultural products, and the recent announcement by President Xi Jinping that directed the government offices to remove all American software and technology equipment, stood in the way of such a deal that is still awaiting signatures.

China May Impose An Additional 25% Tariff On U.S Made Vehicles On December 15th

On September 1^st, China had imposed additional tariffs on U.S imports including pork, crude oil, beef, soybeans, and chemicals. The second batch that is likely to kick in on December 15^th, following the U.S decision, will affect products like wheat, corn, rare earth magnets, and small aircraft. It was also expressed recently that December 15^th may as well see the Asian superpower hitting the U.S made vehicles with an additional 25% tariff. Auto parts, on the other hand, that had the tariffs suspended at the start of 2019, may again face a 5% tariff in the upcoming week.  

Despite the rising uncertainty in the global economic outlook, all three of the major Wall Street indices continue to trade near the record high. The S&P 500 is currently trading at 3,141, Dow Jones at 27,907, and Nasdaq at 8,652. The next major movement in the stock market, as per the experts, is expected after December 15^th, following the next major event of the U.S – China trade war that has weighed on the markets for around 2 years.