The U.S. eased the tension between China by a bit after the U.S. President Donald Trump announced that he would delay the levy of 10% tariffs on consumer goods to December 15, saying that it would affect the holidat sales on Christmas. However, other categories would still be imposed by the 10% tariffs on September 1 as intendes.
On Friday, August 23, 2019, China said that it will retaliate by impose additional tariffs of 5% – 10% on U.S. products including agricultural products such as soybeans, crudeoil and small aircraft. China would also reinstituting tariffs on cars and auto parts from the U.S. as well.
Later, Trump salvoed back at China by demanding U.S. companies to cut ties with China and announced that he would raise tariffs again.
A shocking turn of event spread through the market. By the day of the session on Friday, Dow Jones slipped 623.34 points or 2.37%, S&P 500 plunged 2.59% and Nasdaq fell 3%.
As there are no ending to this trade war in sight, some of the developed countries had begun to dip into recession while hoping that the two countries would lower their aggression and try to finally have an actual talk at some point before it is too late.