The stock market may be wrong in rallying to the new US-Chinese tariffs

The shares are relegated to the second round of tariffs between the United States and China and are gathering Tuesday, even with warnings that the trade war could be longer and harmful to the global economy than many investors think.

"I do not think people think it's going to last, even though we're continuing to deepen and there's still the belief that the US economy is good enough to withstand tariffs," said Peter Boockvar, senior strategist. Chef at Bleakley Financial. "I think the landscape is becoming more dangerous."

Businesses have also warned that rates are starting to tighten and could hurt profits in addition to the economy. The business roundtable said Tuesday that the Trump administration was right to tackle China's discriminatory practices, but its unilateral use of tariffs is the wrong approach and the latest escalations threaten businesses and workers US.

FedEx said the tariffs applied to date are about 10 percent of its operations in China, and technology CEOs have warned that rates would hurt their business and could harm US consumers. and the economy.

In particular, Apple's watch and other products were removed from the original US list in the latest price series, which had a positive effect on Apple's stock, which is more than 20% off. his income from China.

China was expected to make life difficult for American companies, but instead tended an olive tree. China has organized a meeting with financial companies for this week. Capital Economics noted that China was supposed to retaliate against individual companies with regulations and boycotts, but since the trade war seemed to drag on, "Chinese leaders have begun to adopt a more flexible position, trade dispute. "

Alden, of CFR, said that China's new position vis-à-vis US companies was understandable.

"I think it's kind of a very direct economic interest." The Chinese have changed their stance on this, "Alden said. "I think they've recognized two things – American companies are no longer an extremely effective lobbying group with the administration … What's the point in compelling US companies if they can not do anything?" Secondly, they fear losing their investment China.

In one province, the local government offers incentives to help offset the rates. "I think the Chinese have given up on that, they do not want to drive out American companies, they want to keep them there," he said.