US: Trade war on next level with China - Rabobank
The US is pushing ahead with plans for the next USD200bn tariff tranche by releasing the list of targeted products, which after public consultations could take effect as soon as end-August, notes the research team at Rabobank.
Key Quotes
“Covered are low-tech goods such as clothing, TV components, refrigerators, and even foods, detailed chemicals like ”4,4'-Isopropylidenediphenol (Bisphenol A, Diphenylolpropane) and its salts”, as well as high-tech items squarely aimed at slowing China’s march to ‘2025’ industrial supremacy.”
“If we see these duties kick in, nearly half of all Chinese exports will be under tariffs.”
“China has immediately responded that it will “fight fire with fire” – and yet it can’t put USD200bn of tariffs in place as it doesn’t buy USD200bn more of US goods! So where do we go? Somewhere that says ‘risk on’? Note that at time of writing CNH was back at 6.69 again, and Chinese equities are tanking.”
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.
