NY (WBEN/AP) – Stocks are sinking again after the U.S. and China each announced taris
on goods exported by the other, a move that
increased investors’ worries over a trade dispute that could slow down global commerce.
The Chinese government issued a $50 billion list of more than 100 U.S. goods targeted for a possible 25 percent tari
hike. The duties could drive
up costs for companies that make airplanes and machinery as well as airlines, and automakers are targets as well.
While in Bualo
Yesterday, Senator Chuck Schumer yesterday said he supports President Trump’s stance on China, though Trump backers like
Mike Lomas of the Financial Guys are questioning the strategy.
“I’ve agreed with Donald Trump on immigration, I’ve agreed with him on tax reform, but I can’t tell you how far apart we are with his war on
trade,” Lomas told WBEN. “It sounds really good when you’re running for oce
and you’re running a campaign, that you’re going to win the war
on trade. He said this morning that we’re not in a trade war, well somebody better let him know we are.”
But could trump reverse course?
“Trump put Larry Kudlow in place as his top economic advisor, and I can tell you that Larry is staunchly pro-free trade,” Lomas said. “This guy was
a leader under Reagan, and he gets it. I’m hoping Donald Trump starts to listen to him. If he does, I think we can right some of this stu.”
In the meantime, the markets are taking a hit. The Dow Jones industrial average fell as much as 501 points at the opening bell Wednesday as
industrial and large technology companies took some of the worst losses. After a big drop Monday and a recovery Tuesday, the S&P 500 is down
more than 2 percent this week. It’s down almost 5 percent since March 1 as investors have focused on taris
as well as controversies
surrounding technology companies including Facebook.