Road leading to a full blown trade war

Solriche: Brent oil superimposed on world map

“If it really does get to be a big war, we have many more bullets than any of these other countries…”

These bellicose words from US Commerce Secretary Wilbur Ross are a feature of the US’ approach to trade disputes with friends and foes alike.

Divisions and sudden about turns are also features, causing confusion and contributing to market volatility. Continue reading “Road leading to a full blown trade war”

Trump’s war on trade – “This is the first of many”

“This is the first of many.” With those words Trump sent a tremor through markets as he signed a memorandum slapping tariffs on up to $60 billion of Chinese goods.

The memorandum allows a 30-day consultation period giving it room as an opening gambit to wring concessions from China.

China is seeking to manage and contain a trade war but may look for an advantage to promote domestic sectors. Continue reading “Trump’s war on trade – “This is the first of many””