On May 5th, President Trump announced plans to raise tariffs on Chinese imports, arguing that current US-China talks are going too slow. On May 10th, the Trump administration announced a hike in the tariff on USD200bn of imports from China to 25% (from 10% currently). Despite this escalation, we continue to think that an agreement is achievable. The G20 summit in Japan in June, where Presidents Donald Trump and Xi Jinping are expected to meet, could be the next moment of truth.
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