Trade War. Trade War. Trade War. Donald Trump increased tariffs earlier than expected given alleged positive trade discussions to 25% on $200 billion worth of Chinese goods. He suggests that the Chinese have been trying to renegotiate a trade deal and this now means that nearly all Chinese exports to the US will face tariffs in the next two weeks.
This means prices in the US will rise. You can guess what happened to markets globally – down, down, down. We have consistently raised the risk of a global slowdown.
We also suggested some weeks ago that Trump may have alternative reasons for higher prices in the US - Trade War = Inflation - Why?
Despite Trade War and Global Markets falling the FTSE 100 went up. Why? Watch this video ...