No concessions from Trump on China – Commerzbank

Where Trump is not willing to make concessions or give in, however, is on China. Here, the motto 'always more than you' seems to apply. The tariff spiral is in full swing, there are only a few exceptions, Commerzbank's FX analyst Antje Praefcke notes.

US-China tariff war hurts everyone

"Now one could say that when two quarrel, a third rejoices. But it's not that simple at the geopolitical and economic level. After all, trade and the flow of goods cannot be quickly diverted or changed (see also the comments by my colleague Volkmar on Friday). It is true that new alliances and partnerships can be formed at the international level (there is a reason why China's President Xi is touring Southeast Asia), but these also take time."

"In this respect, in my view, the bottom line here is also the realization that the (tariff) war between the USA and China is unlikely to benefit anyone, but will primarily harm everyone – after all, with such high tariffs, a standstill in trade or high losses for the companies involved can be expected (with corresponding effects on inflation, employment, etc.). Another reason for me as a currency analyst to remain skeptical about the US dollar and the renminbi."