US: Trade tensions escalating with China – Danske Bank

The tensions between the US and China continue as President Trump is threatening to impose another USD 200bn in tariff on Chinese exports to the US, points out the research team at Danske bank.

Key Quotes

“China has responded that they would retaliate with 'strong counter measures'. Hence, the trade dispute continues and seems to be escalating. The equity markets responded negatively to the news as US equity futures and most Asian equity markets declined this morning.”

“Furthermore, there was a modest strengthening of the yen and a decline in the oil price. So far the macro-economic impact of the trade tensions between the US and China has been limited, but it is seen having a big impact on global growth if it is allowed to escalate .”