US-China trade tensions intensifying – Deutsche Bank

Analysts at Deutsche Bank note that following yesterday’s confirmation by the US that it will impose 25% tariffs on an additional $16bn worth of Chinese goods from August 23rd, China quickly responded with confirmation that it will impose 25% tariff on $16bn worth of US imports from the same date.

Key Quotes

“The list of impacted US goods includes fuel products, autos and medical equipment but excludes bigger ticket items like crude oil and large aircraft.”

“Nonetheless, trade tension concerns coupled with a smaller than expected decline in US crude inventories from the latest EIA data saw WTI oil down to the lowest in c7 weeks (-3.22%).”