The ration is instead rate plans to restrict globally produced exports to China made with or containing US software. This according to sources.. Other export controls under consideration by the US could curb export on a wide range of goods to China.
According to the source, the specific idea may not move forward as planned, but the administration is looking to put pressure on China in response to their restrictions on rare earth and its boycott of soybean and other agricultural purchases.
Trump has announced tariffs on US China imports at155% starting November 1 but that is not getting much traction. Restricting software, aircraft, and other goods would add to the pain.
This tactic is not new to Trump and China has picked up on it. Find the hurt points and if it isn’t enough, double up until it works. How long that takes and what the end result ends up being is unsure.
Stocks initial move is to the downside.
The S&P index is down -46 points or -0.67%. The NASDAQ index is down -266 points or -1.16%.
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