Trade-sensitive stocks on ropes as uncertainty weighs

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A week of worsening fears on Wall Street leading up to Washington's increas...

- A week of worsening fears on Wall Street leading up to Washington’s increase on tariffs on Chinese goods has taken a toll on stocks that rely heavily on global trade.

With U.S. President Trump saying he is in no hurry to sign a deal with China, the United States raised its tariffs on $200 billion in Chinese goods to 25% from 10% on Friday, rattling financial markets already worried the 10-month trade war between the world’s two largest economies could spiral out of control. China’s Commerce Ministry has said it would take countermeasures against the increase in U.S. tariffs.

After Trump said last Sunday he was reversing a decision he made in February to keep tariffs at 10%, Wall Street descended from record highs reached at the start of the month. Shares of semiconductor companies, the U.S. sector that relies more than any other on China for its revenue, turned sharply lower this week, with the Philadelphia Semiconductor Index down 5.8% since Sunday and slashing its year-to-date gain to 28%.

 

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