MENU

Donald Trump targets US$200 billion more tariffs

President Donald Trump seems to be looking to intensify the trade war by threatening another US$200 billion worth of tariffs onto Chinese goods. China implemented retaliatory measures after the Trump Administration’s initial tariffs.

In a statement, President Trump said “China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers and farmers who have done nothing wrong.”

He seems to be implementing the best of his ‘art of the deal’ tactics to try to bring China to the negotiating table. However, I can’t see China rolling over and letting its economic tummy be tickled.

President Trump may have a point, but it’s this type of thing that could cause global economic growth to grind to a halt and cause more damage than good. Particularly as he is also jousting with allies on trade as well.

Australia in-particular is vulnerable to a Chinese-American trade war. We are politically aligned to the US, but more economically tied to China. Large amounts of direct and indirect of our economy relies on China. Think of resource stocks like BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO), consumer shares like Bellamy’s Australia Ltd (ASX: BAL) and Blackmores Limited (ASX: BKL) as well as tourist shares like Sydney Airport Holdings Ltd (ASX: SYD) and Crown Resorts Ltd (ASX: CWN).

Foolish takeaway

I do not ultimately believe that either the US or China wants a global recession to start because of this. It could create more share market volatility, which could be a buying opportunity.

If President Trump causes one of these top stocks to fall, I’ll be very interested in buying some shares.

Top 3 ASX Blue Chips To Buy

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 owns shares of and has recommended Blackmores Limited, Crown Resorts Limited, and Sydney Airport Holdings Limited. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!