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Trump talks tough on trade: what are the implications?

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Report summary

The Trump administration has announced a further round of protectionist trade measures, aimed at China. They include tariffs on imports and restrictions on Chinese investment in the US. The scale of the tariffs is relatively small, and the direct impact on economic growth will be minimal. Of greater concern is the risk of escalation and the negative impact this will have on sentiment. Waning confidence could slow growth, and commodity demand in turn. Increased risk aversion will may also drag on commodity prices. The restrictions on Chinese investment in the US could also have implications for the energy industry.

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  • The latest tariffs in context

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