'Biden Administration Preparing To Raise Tariffs On Clean-Energy Goods From China; Levy On Chinese Electric Vehicles Would Roughly Quadruple' - WSJ
Portfolio Pulse from Benzinga Newsdesk
The Biden Administration is reportedly planning to increase tariffs on clean-energy goods from China, including a significant hike on Chinese electric vehicles, which would see tariffs roughly quadruple, according to the Wall Street Journal.
May 10, 2024 | 3:05 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY), which seeks to provide investment results that correspond generally to the price and yield performance of the S&P 500 Index, might experience mixed impacts. On one hand, increased tariffs could benefit some U.S. clean-energy sectors by making Chinese goods less competitive. On the other hand, it could escalate trade tensions, potentially harming overall market sentiment.
SPY, mirroring the S&P 500, includes a broad range of companies, some of which could benefit from less competition in the clean-energy sector due to higher tariffs on Chinese goods. However, escalating trade tensions could negatively affect market sentiment, making the overall impact on SPY mixed and uncertain.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60
NEGATIVE IMPACT
The iShares China Large-Cap ETF (FXI), which tracks the investment results of an index composed of large-capitalization Chinese equities, could face downward pressure as increased tariffs may negatively impact Chinese companies involved in clean-energy goods, including electric vehicles.
FXI's exposure to large-cap Chinese companies means that any regulatory changes affecting trade, especially in sectors like clean energy and electric vehicles, could have a direct impact on the performance of these companies and, by extension, the ETF itself.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80