The US President announced an additional 10% increase in tariffs on the remaining $300 billion of Chinese imports. Trump posted a number of tweets which are put together below:

“Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to……..buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and……during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%…..We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”   

The USD lost ground against the board after the tweets, but has recuperated now, although only against risk assets. AUD/USD has crashed down and we just booked profit on our sell signal. Crude Oil is also diving, while safe havens are making the most of it with USD/JPY down to 107.20s and gold back up to $1,440.