August 2018 Market Commentary

Introduction The news in July really could not have been much worse. The threat of a trade war between the US and China simmered throughout the month, and then on 31st July President Trump ramped up the tension with proposals of a 25% tariff on $200bn (£152bn) of Chinese imports. China has already placed retaliatory tariffs on some American imports in response to the first wave of ‘Trump Tariffs’ (they even have their own page on Wikipedia now) and will surely do the same to counter this latest move. Small wonder that credit ratings agency, Moody’s, warned that there could Read More

What does the US trade war with China mean for the rest of the world ?

Trump’s presidency has seen U.S. trade policies return to a bygone era of protectionism. At the start of July, the U.S announced $34 billion of tariffs on Chinese goods, suggesting that Trump has China firmly in his sights. With $16bn more in the pipeline and Trump advising his administration to prepare to collect a further $200bn worth of Chinese tariffs, the U.S.-China trade war is already in full swing. The U.S. sees China as a threat because of its rapid rise as a colossal exporter. The figures alone are striking: China already exports almost seven times as much as it Read More