Stocks Plunge After Trump Vows To Retaliate To China “This Afternoon”, Orders US Companies To Find “An Alternative To China”

Anyone who was hoping for a quiet end to the week will be severely disappointed when first China announced new tariffs on the US, then Powell’s J-Hole speech came and went, and then, as we expected, Trump responded to China’s trade war escalation when in a barrage of 4 tweets he lashed out at China, saying “We don’t need China and, frankly, would be far better off without them“, and ordered “Our great American companies… to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.“

And the punchline: “I will be responding to China’s Tariffs this afternoon.”

From Trump:

Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them.

The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP.

Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.

I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States.

Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE, all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t.

Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!

Both yields and stocks tumbled on this “unexpected” escalation…