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Analysts at Danske Bank point out that there was a significant negative shift in sentiment as the US administration announced it is planning to levy a tariff of 10% on another USD200bn worth of goods imported from China.

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“Goods targeted include clothing and technology products but not e.g. mobile phones. The move comes after the US last Friday implemented a 25% tariff on the first USD34bn amount of Chinese goods and threatened to up the amount targeted to USD500bn.”

“Should tariffs on this additional USD200bn come into effect, import levies would hit close to half of China’s exports to the US as of 2017. China has vowed to retaliate to US measures one-for-one; a Chinese official said that the US is escalating the trade dispute but no specific retaliation measures were announced overnight.”

Equities were mixed to positive in the US but the Asian session showed marked losses with Chinese indices down close to 2%.”