China retaliates with its own threat of tariffs

The Chinese have threated to impose their own tariffs after Donald Trump’s memo.

Earlier today, President Donald Trump signed a memo instructing his officials to draw up a list of Chinese goods that the US could impose a tariff on.

He believes that that this is a ‘reciprocal’ move due to alleged Chinese theft of intellectual property when US businesses have to enter into joint ventures because otherwise they find it very difficult to enter the huge Chinese market.

The US stock market plummeted overnight. The S&P 500 ETF (ASX: IVV) dropped by 2.52%. Investors feared that this would cause a trade war because it could lead to tit-for-tat reactions between China and the US.

As feared, China has fired back with its own list of US products that it will impose tariffs on. China has said that 128 US products could attract a tariff.

Chinese officials said that the country could impose a 15% tariff on products like wine, nuts, dried & fresh fruit, steel pipes and ginseng. China could also impose a 25% tariff on US products like recycled aluminium and pork. The country could also remove concessions relating to US steel and aluminium.

President Donald Trump and President Xi Jinping both don’t seem like the type of people who will back down easily over this issue. In-fact, it’s quite easy to see that thing could escalate in the coming months.

Foolish takeaway

It definitely isn’t time to push the panic button and sell everything, but investors should save some cash in-case there are even better opportunities than today to buy some beaten-up shares. That’s what I’ll be doing.

Indeed, I am keeping a close eye on one of these top growth stocks, which could be an excellent buy in this market volatility.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.