The effects of the new U.S. tariffs on imported technology have been felt immediately with the stock market negatively reacting to sweeping tariffs that many expect would result in a global downturn. Almost all media outlets and economists agree that the tariffs will lead to sharp price hikes for swathes of products in the US consumer and commercial markets. To make things worse, China responded with new tariffs of its own and restrictions on U.S. goods. Starting April 10, China will impose an additional 34% tariff on all U.S. products, bringing its own rate to 54%. But that’s not it. China also announced new export controls on key rare-earth elements used in high-tech, defense, and green energy applications. These controls were effective immediately, while adding a dozen US companies in its list of “unreliable entities.” All of this is likely to disrupt global trade and set to hit the stock markets in the days to come.
________
This analysis is reserved for clients subscribing to the Pulse Service.
Already a subscriber? Please log in here.
Not a Pulse subscriber? Click here to subscribe
Or schedule a free consultation here to learn more.
