It Is Time To Chill

As of 12:30 today, all three markets were up. The Dow showed a plus of 280, while NASDAQ and S&P were both approaching up 100 points each.

 

This was after the Trump Administration announced 104% tariffs on Chinese products and China announced 84% tariffs on US goods.

Luxshare, a Chinese firm that assembles iPhones and makes AirPods, will also reconsider some planned investments in China as Trump’s trade war plays out, chairwoman Wang Laichun said during a lengthy call with analysts on Wednesday.

“If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localized to meet the needs of the US market,” Wang said.

In addition, President Trump urged Americans to "chill out" Wednesday as his enormous “reciprocal” tariffs took effect — including the 104% rate on China and 20% duty on the European Union.

“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Trump wrote on social media.

“THIS IS A GREAT TIME TO BUY!!!” he added two minutes later, referring to the significant stock market selloff since he announced his “Liberation Day” levies April 2.

Computer chips, copper, lumber and pharmaceuticals were exempt from the new tariffs, though Trump has publicly committed to slapping levies on each of those products in a bid to return manufacturing to the US.

Keep in mind that several countries are negotiating deals with the US where their tariffs will be reduced or even removed if the US does the same. And the President has promised to work with everyone who offers a fair deal.

In the end, it will be China who loses, because it will continue to try and take advantage of its cheap labor while keeping products artificially high. By the end of the next week, all will settle back to normal for everyone else.

By the way, at 2 PM, the Dow is over 2,000 points and the others are rebounding upward, as well.

And once again, the markets will soar.