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 ultimately be tariffs on 5% of total world imports if the trade war continues to escalate. Continue reading