US-China trade tensions at the forefront – Deutsche Bank

Analysts at Deutsche Bank point out that overnight the US trade representative office (USTR) has proposed imposing 25% tariffs on c$50bn worth of Chinese made imports.

Key Quotes

“The list of 1,300 products include high tech items that “benefit from Chinese industrial policies, including (the) Made in China 2025 (strategy)” such as semi-conductors as well as products ranging from TV sets, motor vehicles, dishwashers and even flamethrowers! Looking ahead, there is a 60 day consultation period where the public can provide feedback and the government will hold hearings on the tariffs on 15th May.”

On the other side, the Chinese Ministry of Commerce indicated “China plans to bring relevant US practice to the dispute settlement body of the WTO and is ready to take counter measures on US products with the same intensity and scale that will be published in the coming days”.”