Trump says U.S. will put additional 10% tariff on China starting September 1
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:
1. ADDITIONAL TARIFF ON CHINA: On Thursday, President Trump said via Twitter that, "Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to […] buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States - this never happened, and many Americans continue to die! Trade talks are continuing, and […] during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25% […] We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!"
2. DELAY OF F-16 SALES TO TAIWAN: Lawmakers in Congress from both political parties have accused the Trump administration of delaying an $8B sale of F-16 fighter jets, which are made by Lockheed Martin (LMT), to Taiwan, The New York Times' Edward Wong and Eric Schmitt reported. With Chinese officials having said they object strongly to the sale of 66 jets requested by Taiwan, lawmakers are now questioning whether the Trump administration is delaying approval of the sale, either to avoid upsetting Beijing while delicate trade negotiations are underway or to use it as a bargaining chip, the authors note.
3. JEDI CLOUD CONTRACT: On Thursday, Bloomberg reported that the new Defense Secretary has ordered a review of the JEDI cloud contract, which could be worth up to $10B for Microsoft (MSFT) or Amazon (AMZN) and has drawn criticism from Oracle (ORCL). Elissa Smith, a spokeswoman for the U.S. Department of Defense, issued a statement reported by CNBC on the Pentagon putting the $10B JEDI cloud contract on hold while Secretary of Defense Mark Esper reviews it: "Secretary Esper is committed to ensuring our warfighters have the best capabilities, including Artificial Intelligence, to remain the most lethal force in the world, while safeguarding taxpayer dollars. Keeping his promise to Members of Congress and the American public, Secretary Esper is looking at the Joint Enterprise Defense Infrastructure - JEDI - program. No decision will be made on the program until he has completed his examination."
Earlier this week, CNN's Michael Warren, Kylie Atwood and Alex Rogers had reported that Trump wants to "scuttle" the Pentagon cloud contract. Citing three sources familiar with the matter, the authors added that White House aides have shown Trump a document that suggests that Amazon is involved in a conspiracy to win the deal, and that document is identical to one created by Oracle Executive Vice President Ken Glueck.
4. PRESCRIPTION DRUGS FROM CANADA: The Trump administration said it will create a pathway allowing Americans to legally and safely import lower-cost prescription drugs from Canada for the first time, according to a report published Wednesday by NBC. The move is a step toward fulfilling a 2016 campaign promise by President Trump, the report noted, adding that the plan has to go through regulatory approval and later could face court challenges from drugmakers. Publicly traded pharmaceutical companies include AstraZeneca (AZN), Bristol-Myers (BMY), Eli Lilly (LLY), GlaxoSmithKline (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).
5. DISCOUNT RATES NEGOTIATED WITH INSURERS: Hospitals might be forced to disclose the discounted prices they negotiate with individual insurance companies such Cigna (CI), Anthem (ANTM) and CVS Health's (CVS) Aetna under a Trump administration rule, The Wall Street Journal's Stephanie Armour reported earlier this week. According to the proposal, which would cover all the more than 6,000 hospitals that accept Medicare, hospitals that fail to share the discounted prices in an online form could be fined up to $300 a day. Publicly traded companies in the hospital space include Community Health (CYH), HCA Healthcare (HCA), LifePoint (LPNT), Tenet (THC) and Universal Health (UHS).
"Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.