China may retaliate against the US and escalate the crisis

The announcement of a new tariff hike on China made on Friday, 10, by United States President Donald Trump has a high chance of escalating into new Chinese retaliations in the coming days, according to the chief economist of the consultancy MB Associates, Sérgio Vale. If the additional 100% tax is indeed confirmed, there are "high chances" that China will announce measures in the same vein and proportion, he says. "China is the only country that has the capacity and conditions to use the same tool against the US—and has done so before," says the economist. According to Vale, until November 1, the deadline given by Trump for the start of the new tariffs, the market should go through a period of strong volatility. On Friday, different indicators were impacted as soon as the retaliation was announced. Oil fell by more than 4% and the Ibovespa futures registered a drop of 1.15%. The prices of digital currencies, such as bitcoin and ethereum, shrank by 8.23% and 14.56%, respectively. ...