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Opinion
John Authers

China May Have Miscalculated Trump’s Weak Spot

By raising tariffs, the White House puts pressure on China to stimulate its economy, which will lead to a recovery in U.S. share prices. 

U.S. stocks suffered their worst rout since December on Monday.

U.S. stocks suffered their worst rout since December on Monday.

Photographer: Drew Angerer/Getty Images North America
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It’s fair to say that Wall Street did not anticipate China’s retaliation to U.S. tariffs. Last week, the negative reaction to President Donald Trump’s announcement of new tariffs on China was oddly muted. On Monday, after China’s response was announced just before the market opened, the S&P 500 fell by more than it had done in the entire previous week.