US equity and bond markets were CLOSED overnight for the Labor Day holiday.
Reuters reported on Monday (2 September) that China had lodged a complaint against the US with the World Trade Organisation. The latest round of U.S. tariff hikes on Chinese goods came into force on Sunday (1 September), with duties raised from 10% to 15% on US$112B of imports. All told, more than two-thirds of the consumer goods the US imports from China now face higher taxes. After Sunday’s move, ~87% of textiles and clothing the US buys from China and 52% of shoes will be subject to import taxes. On 15 December, the Trump administration is scheduled to impose a second round of 15% tariffs - this time on roughly US$160B of imports. If those duties take effect, virtually all goods imported from China will be covered.
