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The escalation of the trade war, with the US administration moving forward with imposing tariffs of 10% on an additional $200bn of Chinese goods, should not come as a major surprise, according to analysts at TD Securities.

Key Quotes

“President Trump had asked the US Trade Representative’s office to draw up a list last month and according to US officials the lack of negotiation from China has led this action.”

“The tariffs are scheduled to take effect after the end of public consultations on Aug 30. This is separate from tariffs on the $34bn already imposed and the further $16bn potentially to be imposed after a public hearing later this month.”

“All together Trump has threatened tariffs on almost all ($500 out of $506bn) of China’s exports to the US.”

source: CNBC