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Trump trade rep says new 100% tariff on China depends on Beijing's next move

1. Trump may impose 100% tariffs on China over rare earth disputes. 2. China controls 60% of rare earth mining, affecting U.S. industries. 3. U.S. stock market lost $2 trillion due to tariff threats last week. 4. Meeting between Trump and Xi may be influenced by trade tensions. 5. Long-term U.S. strategy aims to reduce dependence on Chinese supply.

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FAQ

Why Bearish?

Historical tariff announcements have consistently led to market downturns; this scenario parallels past events.

How important is it?

The potential trade disruption significantly impacts major sectors tied to S&P 500, such as technology and automotive.

Why Short Term?

Immediate market reactions to tariffs generally occur quickly, as seen in prior announcements.

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