Extra on Goldman Sachs – China retaliatory measures to have restricted affect on vitality costs

Trump’s further 10% tariffs on China got here into impact on Teusday, February four.

China’s retaliation adopted simply hours later:

• China declares counter-tariffs in opposition to Trump’s commerce strikes
  • levies of 15% for US coal and LNG, 10% for crude oil, farm gear and a few autos
• China anti-monopoly regulator launches investigation into Google

As but, there isn’t a signal of a dialog going down:

• WSJ: Pres Trump and China Pres. Xi aren’t talking immediately

I posted earlier on the GS evaluation:

• Goldman Sachs – China commerce warfare retaliation measures to have a restricted vitality value affect

Including just a little extra now:

• “We consider close to time period implications to commodity markets will likely be restricted on condition that neither international provide nor demand of those commodities are modified by China’s tariffs,”
• impacted U.S. volumes prone to discover different shopping for markets simply
• China to exchange impacted import volumes with different suppliers
• for coal, GS expects US volumes to be redirected to Japan and Korea, which is able to possible launch native Pacific basin provides to go to China as an alternative
• China crude oil imports from the US are small

Additionally, the above:

• Monetary Occasions: China’s exporters to step up offshoring to beat Trump’s tariffs

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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