The Trade War With China Mutes the Market’s Momentum

Commentary

The S&P 500 rose 1.7% last week, but it is still flat for the month of October, since President Trump rattled the stock market when he announced he would impose an additional 100% tariff on China as well as export controls on “any and all critical software,” beginning on November 1st. These tariffs would raise import taxes on many Chinese goods to 130% as of November 1st, which is only slightly below the 145% level imposed earlier this year. Clearly, President Trump wants to negotiate a better trade deal with China.