CMAS Q1 2018 Market Update

On 22 March the United States announced its first set of punitive actions against China by proposing tariffs on up to USD 60 billion of imports from China. The US decision to impose trade restrictions on China came only two weeks after the Trump administration announced tariffs on steel and aluminum products, citing national security grounds under Section 232 of the Trade Expansion Act. That said, many economies were given temporary exemptions before the tariffs came into force on 23 March, including the European Union and North American Free Trade Agreement (NAFTA) partners Canada and Mexico.

In retaliation China announced on 2 April that it would start levying tariffs on US agricultural products such as fruit, nuts, wine and pork. Barely 24 hours later the US hit back by targeting another USD 50 billion of Chinese imports in response to alleged intellectual property theft by China dating back to August 2017. Read more