While the market might have taken a sigh of relief yesterday when the US tried to tone down the threat of a trade war with Beijing, make no mistake, China’s debut of a new package of tariffs is nothing to take lightly. The country proposed 25% tariff hikes on 106 US imports, including big ones like soy beans, cars, and chemicals. ““America’s measures [to impose tariffs] have violated the rules of the World Trade Organization and have seriously violated China’s legal rights”, said the country’s foreign ministry. “China does not want a trade war because no one will emerge as a winner in a trade war … but if someone insists on fighting a trade war, we will be there”, said the Chinese vice-minister of commerce.

FINSUM: So we are in a catch 22 with imposing higher tariffs. China has gotten the better of the deal for decades, but changing the terms is not going to be easy because of how big a consumer the country has become.


Donald Trump may be in some very hot water soon. Stormy Daniels’ lawyer has just moved to interview the president under oath in relation to her lawsuit against him. Her lawyer, Michael Avenatti, has just asked a California court for the right to depose the president and his lawyer. The president’s lawyer, Michael Cohen, reject Daniels’ claim, defending his payment to her saying “just because something isn’t true doesn’t mean that it can’t cause you harm or damage”.

FINSUM: We suspect this request will not actually lead to Trump speaking under oath, but that does not mean something else in the case (or others) will not eventually put the president in that position.


Well the market took a big sigh of relief yesterday, with prices swinging back massively. One of the big reasons why was less fear over a possible trade war. In particular, China took a much more conciliatory approach this week. The country announced it would ease foreign investment rules and buy more American semiconductors, a stark move that contrasts the American push towards big tariffs on Chinese imports to the US.

FINSUM: The bottom line in the US tussle with China over tariffs is that the US has a $375 bn trade deficit to Beijing, which means we have much less to lose than them. This is probably the reason Trump referred to trade wars as easy to win.

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