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Wall Street to remain under pressure ahead of the upcoming U.S tariff hike on December 15th

  • The next round of U.S imposed tariffs on Chinese products is set for December 15th.
  • Analysts are expecting Wall Street to remain under pressure ahead of the upcoming tariff hike.
  • Tariffs on imported automobiles and steel imports from Brazil and Argentina to weigh on global stocks.
  • $156 billion of Chinese goods to face a tariff hike on December 15th.
  • U.S GDP expected to be capped at 1.1% in 2020.

The global stock markets have been sensitive to the events of the U.S – China trade war in 2019. With the prospect of tariff hike from the United States of America on Chinese goods on December 15th, the outlook remains the same with the global stocks expected to respond aggressively to Trump’s final decision regarding tariff hike of December 15th.

Wall Street Printed Record Highs At The End Of November

Wall Street ended November on a largely positive note with all three of its primary indices printing record highs. With the start of December, however, as Trump announced that he may choose to delay the trade deal until the 2020 presidential election, a considerable pullback was seen in the global stocks. Towards the end of the week, however, with Washington changing its tone and the economic data (non-farm employment change, unemployment rate, and average hourly earnings) turning green for the U.S economy, the S&P 500, Dow Jones, and Nasdaq indices remained upbeat again to close the week.

According to the analysts, Wall Street could respond aggressively following December 15th when a new round of tariff hike on Chinese products is set to begin. In the past week, investors are expecting the December 15th hike to be delayed. However, following Trump’s contradictory statement, the expectations have quickly faded away.  

According to chief market strategist, Keith Lerner of SunTrust Advisory Services, as long as a clear direction is not determined for the U.S – China trade war, the stock market can be expected to respond to the day to day headlines in the upcoming week.

Other complications on the trade front that are expected to cast an impact on the global financial markets include Trump’s recently announced increased tariffs on steel imported from Argentina and Brazil, increased tariffs on imported automobiles, and the North American Trade pact that await approval.

$156 Billion Of Chinese Goods Are Likely To See Increased Tariffs On December 15th

As per the sources, December 15th can see $156 billion of Chinese goods to face a tariff hike. Consumer goods are expected to contribute the most to the list of products to face an increased tariff from the United States. Such products include laptops/ desktop computers, cellphones, clothing, and toys.

Following the December 15th tariffs, the UBS economists forecasted, a 0.1% to 0.2% effect on the U.S gross domestic product can be expected in all four quarters of 2020. GDP growth next year, the economists added, is likely to remain capped at 1.1%. The first half of 2020 will see the tariffs weighing heavily on the economy at large.

About the author

Michael Harris
Michael Harris
I began trading in my early 20's at a local company and since then have combined my knowledge and love of content to become a news writer. I am passionate about bringing insightful articles to readers and hope to add some value to your portfolios!

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