Latest round of tariffs to hit pork, tech, furniture and clothes, creating a minefield for stock investors
- As of Sunday, new US tariffs went on Chinese goods like televisions, smart watches, shoes and clothes
- China pumps up tariffs on pork imports, adding more pressure on global leader WH Group
Investors, watch out: new tariffs that kicked in on Sunday will hit Chinese companies that export things like furniture and smartphone components, as well as exporters of pork from the US like Hong Kong-listed WH Group.
Manufacturing stocks that will feel the sting include furniture maker Man Wah Holdings, analysts say, while technology stocks that could feel the latest tariff punch include Sunny Optical, ZTE and ASM Pacific Technology.
“At each round of escalation in the US-China trade war, whether that is new retaliatory tariffs or new sanctions proposals … investors are growing more and more uncertain. There does not appear to be an off ramp to this path of continued escalation,” said Hannah Anderson, global market strategist at J.P. Morgan Asset Management, adding that negotiations are unlikely to see much progress as both sides keep hardening their views.
“This uncertainty is having the most damaging effect on markets. It constrains investment, slows growth, elevates volatility, and darkens the outlook for investors of all stripes,” she said. “We will likely continue to see downward price action at the announcements of new measures.”
The US and China suddenly escalated their trade war, which already put an end to this year’s big run-ups in stocks traded in Hong Kong and on the mainland.
Though market reaction to continual bouts of tension flare-ups has started to become more muted, according to analysts, the latest round of tariffs – to be followed by more on December 15 – pose tricky challenges.