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Analysts at Rabobank point out that the latest set of US tariffs on USD 200bn of Chinese goods took effect just after midnight Washington time on Monday and Chine is set to retaliate with tariffs on USD 60bn of US products, which would trigger duties on USD 267bn of Chinese imports as President Trump threatened.

Key Quotes

“Essentially, all products China exports to the US could be affected if tit-for-tat continues. Following another set of tariffs, Beijing cancelled scheduled trade talks with US officials this week.”

“There seems to be growing consensus amongst Chinese officials that meaningful talks will only be possible after US mid-term elections in November, Bloomberg reported according to people familiar with the situation. Official Xinhua News Agency published headlines on the white paper on trade relations with the US saying that “the door for trade talks is always open, but negotiations must be held in an environment of mutual respect.” It also stated that talks “cannot be carried out under the threat of tariffs.”