US stock market collapses after Trump’s “order” to US companies to withdraw production from China

Statements of trump in social networks made after the decision of China on the application of reciprocal import duties led to a new collapse of the American stock market.

Quotations of a number of leading US corporations on Friday, August 23, showed a pronounced negative reaction against the backdrop of Trump’s threats to aggravate the trade conflict with China.

Apple shares fell 4.6%, Caterpillar — 3.2%, Amazon — 3.1%.
The US stock market started Friday’s session with a slight decline after the announcement of the application of import duties of $ 75 billion, which appeared shortly before the opening of trading.

Major stock indexes for a short time went into positive against the backdrop of investors’ expectations to hear promises of further easing of monetary policy by Fed Chairman Jerome Powell.

However, the new statements by President Trump, as the Vesti.Ekonomika portal noted, overshadowed the speech of the Fed head and nullified all the small positives. After growth attempts at the beginning of the session, the Dow Jones index fell by 2.4% amid Trump’s statements on Friday results, the S&P 500 — by 2.6%, Nasdaq — by 3%.

The US president, in particular, stated that «he will no longer allow China to rob the United States and steal intellectual property,» adding that «the United States does not need China.»

Trump said he is «ordering our great American companies to immediately start looking for alternatives to China, including the return of companies and the production of goods in the United States.»

The 45th president of the United States also announced that he «orders all courier companies — Fed Ex, Amazon, UPS — and the US Postal Service to look for fentanyl in parcels from China.» According to him, fentanyl «kills 100 thousand Americans a year, President Xi [Jinping] promised to stop this, but this did not happen.»

In early August, after Trump’s threats about new duties against China in the US stock market, one of the most serious declines in 2019 has already taken place. Given the negative effect that Trump’s statements are increasingly beginning to have on the US stock market, his question is “who our biggest enemy — Jerome Powell or chairman of [PRC] Xi [Jinping], «looks rather strange, clearly betraying a desire to shift responsibility for what is happening to others.

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