Trump: China to remove its trade barriers, “because it is the right thing to do”- ANZ

Analysts at ANZ explained that Friday saw Trump threaten an additional USD100bn of tariffs against Chinese exports, with China pledging to retaliate.

Key Quotes:

Adviser Larry Kudlow continued to try and soften the tone, but said the tariffs are “not a bluff” and China’s response is “highly unsatisfactory,” which may explain why his words did not soothe markets as they had earlier in the week.

In a Sunday interview Kudlow stated, “we’re not gonna end up in a trade war”, and Trump tweeted “President Xi and I will always be friends”, while predicting China would remove its trade barriers “because it is the right thing to do”.

Adding to geopolitical tensions, the US announced more sanctions against Russia, this time targeting financial dealings of wealthy individuals close to President Putin. Volatility is not going away soon."