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While the heat is turning up on Trump’s recent allegations against China meddling in US elections, analysts at Rabobank noted that last week, there was already an escalation in the China/US trade war.  

Key Quotes:

“Beijing added an additional $60 bln of US products to its import tariff list.”

“This followed the announcement from the US that it was adding tariffs on another $200 bln of Chinese goods.

“According to President Trump more could follow. Although there are plenty of signals that growth in China has slowed this year, it is more difficult to read international trade data.”

“Stock piling is likely to have occurred before the tariffs took place and in any case, trade numbers can be difficult to collate. “

“It could be some time before the full impact of trade wars is seen in the data and this could mean that investors currently risk being lulled into a false sense of security.”