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After earlier rounds of tariffs, the US has announced that it will impose additional tariffs on imports from China and China has said that it will respond with taxes on USD 60 billion of imports from the US, points out the research team at Rabobank.

Key Quotes

“Although China can tax less imports from the US, they will probably also include non-tariff barriers as part of the measures in case of further escalation.”

“The negative economic effects will be more pronounced for China than for the US.”

“The economic damage caused by the protectionist measures on either side will harm China to a larger extent than the US.”

“We do expect a further escalation of the trade tensions, also beyond the November midterm elections.”