# Trump escalates trade war with more China tariffs

> President Trump announced a fresh 10% tariff on another $300 billion of Chinese goods, effective September 1, after bilateral talks made little progress. He accused China of not honoring commitments to buy more U.S. agricultural products. Chinese Foreign Minister Wang Yi criticized the move, and markets fell sharply in response.

- Date: 2019-08-01 · published 2019-08-01T12:00:00.000Z
- Category: trade · region China · magnitude high
- Page: https://feedsoft.ai/events/8497-trump-escalates-trade-war-with-more-china-tariffs
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Sorghum](https://feedsoft.ai/c/SORGHUM.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Chicken](https://feedsoft.ai/c/CHICKEN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tariffs on the broad range of Chinese imports and the complaint about unmet farm purchases point to reduced U.S. agricultural export demand to China. That is bearish for soybeans and other U.S. feed grains.

## Read by commodity

- SOY: bearish ▼
- WTI: bearish ▼
- CORN: bearish ▼
- BRENT: bearish ▼
- CHICKEN: bullish ▲
- SORGHUM: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2019-08-07 | 5 | -14.1% | -3.3 | The new 10% tariff on $300B of Chinese goods triggered the trade escalation and recession fears that hit crude demand expectations. |
| CORN | 2019-08-05 | 1 | -4.1% | -5.5 | The Aug 1 tariff escalation and accusation that China wasn't buying US farm goods raised fears of lost export demand, setting up the sell-off that carried into Aug 5. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-05-06 | [Chinese yuan tumbles as Donald Trump threatens trade tariffs](https://feedsoft.ai/events/10428-chinese-yuan-tumbles-as-donald-trump-threatens-trade-tariffs.md) | -3.2% | +10.5% |
| CORN | 2024-06-07 | [Will more Trump tariffs hurt or help U.S. farmers?](https://feedsoft.ai/events/29760-will-more-trump-tariffs-hurt-or-help-u-s-farmers.md) | +5.6% | -4.9% |
| CORN | 2023-08-17 | [US escalates Mexico corn trade spat with dispute panel request](https://feedsoft.ai/events/34537-us-escalates-mexico-corn-trade-spat-with-dispute-panel-request.md) | +1.2% | -1.4% |
| CORN | 2024-12-12 | [Trump trade war to hurt farmers as China turns to Brazil](https://feedsoft.ai/events/14698-trump-trade-war-to-hurt-farmers-as-china-turns-to-brazil.md) | -0.0% | +5.6% |
| CORN | 2020-10-27 | [Trump's phase one trade deal with China and the US election \| PIIE](https://feedsoft.ai/events/50504-trump-s-phase-one-trade-deal-with-china-and-the-us-election-piie.md) | -3.7% | +6.9% |
| SOY | 2018-06-19 | [Trump Wants More China Tariffs](https://feedsoft.ai/events/64511-trump-wants-more-china-tariffs.md) | -3.7% | -7.6% |
| SOY | 2019-08-01 | [Dollar falls against yen after Trump whacks China with more tariffs \| Reuters](https://feedsoft.ai/events/57813-dollar-falls-against-yen-after-trump-whacks-china-with-more-tariffs-reuters.md) | -1.8% | -1.3% |
| SOY | 2019-08-01 | [Oil plunges, down more than 6% after Trump adds tariffs on China](https://feedsoft.ai/events/8495-oil-plunges-down-more-than-6-after-trump-adds-tariffs-on-china.md) | -1.8% | -1.3% |

## Sources

- agronews.com.pl: https://agronews.com.pl/artykul/belgijskie-zamieszanie-na-rynku-jaj-zyskaja-polscy-producenci/
- bbc.com: https://www.bbc.com/news/business-49199559
- cnbc.com: https://www.cnbc.com/2019/08/01/gold-markets-federal-reserve-dollar-in-focus.html
- nutraingredients.com: https://www.nutraingredients.com/Article/2019/08/02/White-House-announces-broad-new-tariffs-catching-many-supplement-ingredients-in-the-net/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.