Trumps’ New Threat to Escalate Trade Tension Drops Asia Markets to Trade Lower!

Asia markets traded lower on Friday, August 2, 2019, after the new trade tension between the U.S. and China had abruptly sparked over the night on the announcement of another $300 billion dollars worth of Chinese goods to be imposed with 10% import tariffs.

As of 9:05 local time in Thailand, Nikkei dropped 2.14%, SSEC fell 1.58%, HSI plunged 2.05%, ASX 200 slipped 0.48% and Kospi slid 1.0%.
Over the night, Dow Jones plunged 280 points or 1.05%, S&P 500 dropped 0.90% and Nasdaq slipped 0.79% while VIX rose 10.86%.

The U.S. President Donald Trump has announced to impose 10% tariff on $300 billion of Chinese imports, starting on 1 September 2019. Moreover, he stated that if the Chinese President Xi Jinping, has not moved quickly for the trade deal, the further tariff might rise higher for the imports.

After the U.S. and China talk this week, Trump tweeted a lack of progress in trade talks between the two countries and he said the taffis could be raised further more than 25%, which he had already imposed a 25% tariff on $250 billion Chinese imports good If the negotiations fail.

Although the U.S. and China have agreed to a ceasefire in the trade war for renegotiation the deal at the G20 summit, according to the current situation, the talk seems unsuccessful.