Trump has fired the next shot in the Trade Wars, announcing $64 billion of measures targetting China. But the measures seem somewhat calibrated, and there is some wriggle room.
US President Donald Trump has signed a presidential memorandum that could impose tariffs on up to $US50 billion ($64 billion) of imports from China, although his action was far removed from the threats that could have ignited a global trade war.
Under the terms of the memorandum, Mr Trump will target the Chinese imports only after a consultation period, a measure that will give industry lobbyists and legislators a chance to water down a proposed target list which runs to 1,300 products.
China will also have space to respond to Mr Trump’s actions, reducing the risk of immediate dramatic retaliation from Beijing, and Mr Trump struck an emollient tone as he started speaking, saying “I view them as a friend”.
Alleged intellectual property law breaches by China will also be pursued through the WTO.
The US markets have fallen sharply, down nearly 3%.
The volatility index is kicking higher, though still below the 30+ level we hit in February.
