US: 'Maximum pressure' strategy continues despite little success – Danske Bank

Danske Bank analysts point out that the US President Trump made another surprise move in the trade war yesterday by putting 10% tariffs on another USD300bn worth of Chinese exports.

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“Interestingly, he also tweeted that the US looks forward to continuing the 'positive dialogue ' with China on a comprehensive trade deal.”

“The tariff announcement was probably a response to the high-level trade talks in Shanghai this week, where China likely showed little movement. Even so, a White House statement called the talks 'constructive'. The last time it used this word was right before the previous tariff increase in early May, so it might be a warning sign in the future. Talking to reporters yesterday, Trump warned that tariffs could go to 25% or higher.”

“It is quite clear that China does not agree with Trump that the dialogue is positive.”