Dow Dips 610 Points As Trade War Intensifies After China Retaliates
The stock market had declined on August 23, 2019 soon after China’s announcement of levying retaliatory tariffs of almost $75 billion U.S goods. President Trump however has sworn to fight back. Industrial average of The Dow Jones fell by above 621 points which is 2.37%. This happened after there was a number of avenging tweets and the Chinese President asked America to search substitutes for China. Stocks of S&P 500 and NASDAQ Composite also fell by 2.59% and 3% simultaneously. The market was quite high throughout the day before the speech by Jerome Powell, Chairman of the Federal Reserve. He had been attacked repeatedly by President Trump for not reducing rates faster.
Powell stood his ground and said that the central bank of the nation would continue behaving correctly in order to help the expansion of the economy. In the midst of everything, Trump labeled Powell as a marked foe who does not think for the benefits of United States and could be worse than Xi Jinping, the Chinese President. Trump tweeted that Fed, like always did not do anything. Trump was stunned to witness their audacity where they did not ask him anything regarding what he is doing or knows and yet spoke against him. He also said that U.S although has a strong value of dollar but the Fed is vulnerable. He promised to work properly for both and said he believed U.S would perform well.
Trump however, later added that who is their bigger enemy. Is it Xi Jinping or Powell? He had earlier written the wrong spelling for Powell’s name and then deleted it. Chinese Ministry of Commerce informed that beginning from September 1, 5% tariff would be levied on crude oil, soybeans. American cars would also be put to a high tariff of 25%. It would start from the beginning of December.