The US steel tariffs initiated by President Trump on major trade partners was initially thought to his bluff leverage concessions from trade partners, especially China. Seems like Trump is serious about his threats and the tariffs went ahead. Major trading partners put together a list of tariffs ranging from orange juice and whiskey to inflict pain on the agricultural support base that has propelled Trump to power. With another round of US tariffs of $34 billion worth of China goods going to take place on 6th July, the world turns their sight onto the Chinese government and their counter response to the tariffs. The Chinese government has already indicated that they will not step down and with Trump seemingly going to fight to the end, a major global trade war seems to be looming on the horizon.

Cautious about the impact of a potential major trade war between US and China, investors pulled money out from China with both the China stock market and Chinese yuan taking a bit hit …