US: 'Maximum pressure' strategy continues despite little success – Danske Bank

Sandeep Kanihama FXStreet Contributor

Danske Bank analysts point out that the US President Trump made another surprise move in the trade war yesterday by putting 10% tariffs on another USD300bn worth of Chinese exports.

Key Quotes

“Interestingly, he also tweeted that the US looks forward to continuing the 'positive dialogue ' with China on a comprehensive trade deal.”

“The tariff announcement was probably a response to the high-level trade talks in Shanghai this week, where China likely showed little movement. Even so, a White House statement called the talks 'constructive'. The last time it used this word was right before the previous tariff increase in early May, so it might be a warning sign in the future. Talking to reporters yesterday, Trump warned that tariffs could go to 25% or higher.”

“It is quite clear that China does not agree with Trump that the dialogue is positive.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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