Dow Shrugs off Trump’s Terrifying Half-Trillion Dollar China Threat

By CCN: Dow Jones futures pushed higher in early trading Thursday, seemingly ignoring Donald Trump’s latest trade threat.

According to Reuters, the president said he was prepared to slam China with tariffs on all Chinese imports:

“I could go up another at least $300 billion and I’ll do that at the right time.”

Not content with the existing tariffs on $200 billion worth of Chinese imports, the newest threat would take the total figure to half a trillion dollars. That’s the entire value of all Chinese imports.

If he follows through, it would undoubtedly have a negative effect on the global markets. Yet the Dow hasn’t even flinched at the news.

Dow futures pop higher despite trade war escalation

At 5.51 am ET, Dow Jones Industrial Average futures clawed 66 points higher (0.26 percent) pointing to another strong open on Thursday. The Dow looks to extend its 700 point rally, climbing to 25,622.

Dow Jones futures chart May 6th

Dow Jones Industrial Average futures pushed higher on Thursday, despite fresh trade threats from Donald Trump. Source: Yahoo Finance

Nasdaq and S&P 500 futures followed suit, up 0.35 percent and 0.26 percent respectively. In the Asian trading session, China’s benchmark index, the Shanghai Stock Exchange (SSE) Composite fell 1.17 percent. Japan’s Nikkei index ended flat.

Trump’s $500 billion threat

The president triggered a stock market selloff in May when he ramped up tariffs from 10 percent to 25 percent on $200 billion worth of Chinese imports. But the president still has plenty of room to maneuver. The US imports a total of $505 billion of Chinese goods.

Donald Trump warned back in 2018 that he was “ready to go to 500.” That figure is still firmly in his mind as he continues negotiations.

Naturally, China threatened to hit back. Chinese military spokesperson Gao Feng said:

“If the United States wilfully decides to escalate tensions, we’ll fight to the end.”

Although China is prepared to fight, Trump still has huge leverage over the country,…

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