14 May The trade war is back – what went wrong
Key Points:
- The trade war between the US and China has returned after talks to resolve their trade differences broke down.
- Our base case remains that a deal will be reached to resolve the issues, but the risks to global growth are
now higher (given the escalation in tariffs from the US) and share markets may need to fall further in the short term to remind both sides of the need for a deal.
