Whitechurch Asset Views - April 2018
Global stockmarkets suffered another month of losses in March, with investors becoming unnerved by the potential fallout of an impending trade war. This has been instigated by President Trump expressing an intention to impose tariffs across a wide range of imports, with China the prime target. Given there tends to be no winners in a trade war, this was universally seen as bad news for global markets.
Although the potential of a trade dispute is unsettling; to put it in context the initial proposals for tariffs on Chinese goods make up around 0.1% of Chinese GDP with even less impact on the US economy from Chinese retaliation measures. Furthermore, like many of Trump’s initiatives, investors will question to what extent it is a war of words and another case of all mouth and no action.