The U.S.-China trade war has intensified following President Trump’s announcement on Twitter that he would impose an additional 10% tariff on $300 billion in Chinese goods, effective September 1. In response, China has been less supportive of its currency and let the yuan fall to its lowest value compared to the dollar in more than a decade. Raymond James Chief Economist Scott Brown believes this decline is more of a reduced effort to support the yuan than an active devaluation, as trade tensions would be expected to put downward pressure on China’s currency. Brown believes this escalation of trade tensions will further slow global growth and increase downside risks to the U.S. economic outlook. For these reasons, he expects the Federal Reserve (Fed) to take action and lower short-term interest rates again in mid-September or late October. A round of negotiations with Chinese officials is planned in Washington around the time of the implementation date, September 1. Washington Policy Analyst Ed Mills thinks the president could delay the actual implementation to later in the month, leaving more time to forge progress at the negotiating table. The S&P 500 has declined approximately 5% since last week and President Trump’s announcement on August 1. Michael Gibbs, managing director of Equity Portfolio & Technical Strategy, thinks stocks will remain under pressure as investors move to protect their portfolios until the Fed cuts rates again or we start to see more positive movement in the trade negotiations. As always, please reach out to us with any questions you may have. We’ll continue to keep an eye on the markets and share any new developments with you. For more information on Keith please visit us at http://www.keith_barberis.stewardpartners.com Barberis Wealth Management Steward Partners Global Advisory 7550 Wisconsin Ave Suite 420 Bethesda, MD 20814 T 240.800.3445 F 240.743.4355 Steward Partners Global Advisory, LLC maintains a separate professional business relationship with, and our registered professionals offer securities through, Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Steward Partners Investment Advisory, LLC. We do not accept orders or instructions for money movement by any electronic or written transmission without verbal confirmation. Transactional details do not supersede normal trade confirmations or statements. Email sent through the Internet is not secure or confidential. Raymond James Financial Services (RJFS) reserves the right to monitor all email. 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