Trump ramps up tariffs on China, escalating the high-stakes trade war

President Donald Trump more than doubled the tariff rate on more than a third of Chinese imports early Friday morning.Beginning at 12:01 a.m. ET, a total of about $250 billion worth of shipments from China will face an import tax of 25%. The escalation has cast doubt on trade negotiations and is expected to lead to higher prices for American businesses          and consumers.    
President Donald Trump on Friday more than doubled the tariff rate on roughly $200 billion worth of Chinese imports, a move that sets the stage for retaliation from Beijing and that significantly raises the stakes in a yearlong trade war between the world’s largest economies.
After accusing China of reneging on past trade commitments, the Trump administration has sought to increase pressure on Chinese officials in negotiations taking place this week. About $250 billion worth of Chinese products will now face a 25% duty when shipped to the US. Previously, a majority of those had been subject to a 10% import tax.
That could lead to higher prices on a wide range of everyday products from electronics to clothing. While Trump claims Chinese companies will pay the price, research suggests American businesses and consumers bear the brunt of tariffs.
Officials at the Chinese Commerce Ministry — who have denied that they made reversals on major aspects of a draft trade agreement — vowed on Wednesday to take countermeasures against increased tariff rates.
Those could include tariffs on American products or other trade barriers. China has already placed retaliatory duties on $110 billion worth of imports from the US, which had caused significant trouble for the US agricultural sector.

The escalation comes just as officials were thought to be nearing a deal. As recently as last week, there were high hopes for the two days of trade negotiations in Washington that began on Thursday.
While both countries have indicated a trade deal is still possible, questions have been raised about the timeline of and the ability to enforce an agreement.
“China can be made to fold, but it would require much more sustained action than the US has taken to now,” said Derek Scissors, a resident scholar at the conservative-leaning American Enterprise Institute. “More likely, China does not fold and smaller-scale US action becomes permanent.”
Trump on Monday also threatened to slap steep tariffs on all remaining Chinese imports, roughly $325 billion worth, a move that economists warn would have widespread effects on businesses and consumers.
“New tariffs on those goods that president has so far left untaxed will fall on American families, as these mostly hit textiles, apparel, shoes, home goods, etc.,” said Mary Lovely, a trade scholar at the Peterson Institute for International Economics.
“Higher taxes on these goods are likely to be highly regressive, in that lower and middle class Americans spend a higher portion of their income on these Chinese imports than do higher income Americans,” she continued. 

Cboe Global Markets Reports April 2019 Trading Volume

boe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies, today reported April monthly trading volume.

The data sheet “Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report” contains an overview of April and year-to-date trading statistics and market share by business segment, volume in select index products, and Revenue Per Contract (RPC), which is reported on a one-month lag across business lines.   

MONTHLY TRADING VOLUMEYear-To-Date
AprilApril%March%AprilApril%
20192018Chg2019Chg20192018Chg
OPTIONS (contracts, thousands)Year-To-Date
Trading Days2121218282
Total Volume 136,907158,305-13.5%148,748-8.0%567,744712,911-20.4%
Total ADV 6,5197,538-13.5%7,083-8.0%6,9248,694-20.4%
FUTURES (contracts, thousands)Year-To-Date
Trading Days2121218282
Total Volume4,5685,484-16.7%5,338-14.4%18,68027,923-33.1%
Total ADV 218261-16.7%254-14.4%228341-33.1%
U.S. EQUITIES (shares, millions)Year-To-Date
Trading Days2121218282
Total Volume21,39428,208-24.2%24,781-13.7%94,910118,358-19.8%
Total ADV1,0191,343-24.2%1,180-13.7%1,1571,443-19.8%
EUROPEAN EQUITIES (€ millions)Year-To-Date
Trading Days2020218383
Total Notional Value€ 176,090€ 203,967-13.7%€ 191,498-8.0%€ 756,907€ 883,316-14.3%
Total ADNV€ 8,805€ 10,198-13.7%€ 9,119-3.4%€ 9,119€ 10,642-14.3%
GLOBAL FX ($ millions)Year-To-Date
Trading Days2221218585
Total Notional Value$693,239$762,953-9.1%$809,512-14.4%$2,992,283$3,423,094-12.6%
Total ADNV$31,511$36,331-13.3%$38,548-18.3%$35,203$40,272-12.6%
ADV= average daily volume
ADNV= average daily notional value

About Cboe Global Markets, Inc.

Cboe Global Markets, Inc. (Cboe: CBOE) is one of the world’s largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to relentless innovation, connecting global markets with world-class technology, and providing seamless solutions that enhance the customer experience. 

Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world’s barometer for equity market volatility.

Cboe’s trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe.  In addition, the company is one of the largest stock exchange operators in the U.S. and is a leading market globally for ETP trading.

The company is headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Quito, Ecuador.  For more information, visit www.cboe.com.

Oil rises as Saudis, Venezuela carve deeper into supplies

OIL began the week on the rebound, as Saudi Arabia moved to extend supply curbs and a nationwide blackout threatened deep production cuts in Venezuela.

Futures in New York climbed as much as 1.7pc after dropping 1pc on Friday amid weak employment data in the US. Saudi Arabia plans to produce well below 10 million barrels a day in April, a Saudi official said over the weekend.

Meanwhile, crude output from fellow Organization of Petroleum Exporting Countries (Opec) member Venezuela has collapsed in recent days after a four-day power outage, according to a senior oil ministry official there.

In terms of production, “there’s nothing really bearish about the markets”, said Brynne Kelly, an energy trader and analyst in New York. “We still have Canada holding back; we still have Opec cuts. At the moment, inventories aren’t out of line.”

Oil has traded in a tight range above $55 (€49) this month in New York, after rallying more than 30pc from December lows amid output curbs by Opec and its allies. Disruptions in Venezuela, Libya and Iran have also tightened supplies, although US production is at a record high.

Turmoil in Venezuela, owner of the world’s biggest crude reserves, is leading its production to slide “significantly,” said the head of the International Energy Agency.

State-owned Petroleos de Venezuela and its joint venture partners are struggling to operate wells and other facilities during the power outage that began last week, said a ministry official. They called the production losses severe but didn’t give specific details.

With plans to export less than seven million barrels a day, Saudi Arabia will supply clients with significantly less oil than they’ve requested for April, the Saudi official said.

With Venezuelan output falling due to US sanctions and power blackouts, refiners have asked for more than 7.6 million barrels a day, the person said.