Investors are bracing for the 15 percent tariffs
Oberweis Asset Management president Jim Oberweis says Trump has to appear tough on China, but China doesn’t want to sign an agreement that doesn’t look good, so short-term deals aren’t on the table.
Traders will go back to work on Wall Street following the Labor Day holiday, facing additional trade tensions between the U.S. and China.
Continue Reading Below
New tariffs on Chinese goods went into effect over the holiday weekend and China said it will sue the U.S. over the new tariffs through the World Trade Organization.
MORE FROM FOXBUISNESS.COM
Dow Jones Industrial futures are 0.6 percent lower, S&P 500 futures are off by 0.6 percent and Nasdaq futures are down 0.7 percent.
The U.S. put new tariffs into effect charging 15 percent tax on about $112 billion of Chinese imports.
China responded by charging taxes of 10 percent and 5 percent on a list of American goods.
Advertisement
The two governments say they are going ahead with talks this month in Washington but neither side has given any sign it might offer concessions.
In Asian markets on Tuesday, China’s Shanghai Composite was down 0.2 percent, Hong Kong’s Hang Seng was off 0.2 percent and Japan’s Nikkei ended the day with barely a gain of less than 0.1 percent.
CLICK HERE TO READ MORE ON FOX BUSINESS
Hong Kong’s markets have been under pressure due to the political turmoil taking place. Hundreds of thousands of people have taken to the streets since mid-June in protests at a now-suspended extradition bill which would see people sent to mainland China for trial in Communist Party controlled courts.
Stocks snapped a four-week losing streak Friday to end a head-spinning August just a few percentage points below their all-time high. The month was capped by Friday’s quiet session during which the S&P 500 edged up less than 0.1 percent.
For the month of August, the Dow Industrials lost 1.7 percent, the S&P 500 was down 1.8 percent and the Nasdaq fell 2.6 percent.
