Next week 10% tariff, next year 25% – Trump’s trade war gets real

LONDON — After a four month "phoney trade war" US president Donald Trump has now triggered hostilities against China with dire implications for Emerging Markets like SA. – Alec Hogg

This is The Rational Perspective and I'm Alec Hogg. In this episode America's Trade War against China gets real. Most analysts have discounted the prospect of a Trade War between Donald Trump's America and China's Xi Jinping. Even when high level talks broke down in May, Trump's threats were interpreted by most as a massive bluff in a high-stake poker game. He seemed to believe that China would definitely back down, make the required reforms and the world would get back to business. Those hopes have now been dashed. The world woke up this morning to news that from next week roughly half the $500bn in goods, which America imports annually from China will cost 10% more. And unless there's breakthroughs in the talks during the next three-months that tariff will jump to 25%. China's richest man, Jack Ma, this morning told a packed CGTN conference in Hangzhou that the Trade War is indeed for real. But typically, for the super entrepreneur, he tried to put a good spin on it.

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