After starting out hot, U.S. stock futures have started to dip early in Monday’s trading session as some pessimism regarding China has entered the marketplace. There were reports last week that progress in the Phase One Trade Deal with China were positive, but the attitude has turned negative this morning and is starting to drag the market down. Some of this lagging may be self-inflicted as reports from China say that they are waiting and watching the U.S. to see how we progress with impeachment speculation and the upcoming election.
As we stand today, we are staring down the barrel of the self-imposed Dec 15th deadline for President Trump to beef up tariffs on Chinese goods. According to reports, the latest round of tariffs would call for a 15% increase on Chinese imports accounting for a value of $156 billion. Unless an agreement is made, this tariff will go into effect on December 15th. This latest tariff would affect nearly every American as the bulk of this tariff is set to tax consumer goods such as cell phones, toys and clothing. Seeing as you are probably reading this on your phone, let’s hope it doesn’t come to that.