Trump wields the “tariff stick” again.
According to CCTV News, on November 25, local time, US President-elect Trump posted on his social media account, swore to impose a 10% tariff on all goods imported from China.
Earlier, US President-elect Trump said that he would impose a 25% tariff on all products entering the United States from Mexico and Canada. Affected by the news, the US dollar index rose sharply, and the current increase is more than 0.5%. Major currencies generally fell against the US dollar, among which the Canadian dollar fell more than 1% against the US dollar, and the Mexican peso fell more than 1.8% against the US dollar.
The exchange rate of the Japanese yen against the US dollar fluctuated sharply. It had previously given up about 0.2% of its gains and turned to decline, and now it has turned to rise again.
In terms of the RMB, the offshore RMB is currently falling by about 0.3% against the US dollar, a drop of more than 200 basis points.
The FTSE China A50 Index futures fell after opening, and is currently down about 0.6%.
Trump proposed a 10% general tariff on all imported goods in an interview last year. In November this year, a study by the National Retail Federation (NFR) pointed out that if Trump’s new tariff plan is implemented, American consumers may lose up to $78 billion in annual spending power. The study shows that these tariffs will affect consumer categories such as clothing, toys, furniture, appliances, footwear and travel goods.
A Reuters analysis pointed out that in recent years, American consumers have become more frugal and reduced non-essential spending, which has put sales pressure on retailers and consumer goods companies. Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, said that retailers rely on imported goods and manufacturing components in order to provide diversified and reasonably priced goods. If these import tariffs are implemented, it will make the economic burden of low-income families even heavier, because the tariffs will eventually be passed on to consumers, leading to higher prices.
Post time: Nov-28-2024