The US President, Donald Trump, has apparently asked a US trade rep to source another raft of tariffs on China, seeking a 10% tariff on $200 billion of Chinese imports.
Trump's initial set of newly-announced tariffs last week drew an immediate response from China, despite the US warning that retaliatory tariffs would see more tariffs applied to Chinese imports. President Trump appears to be making good on that threat as he prepares to move quickly on another set of tariffs against China, who so far remain undaunted by the POTUS' threats.
Donald Trump has also stated that if China responds with yet further tariffs against the US, Trump says that he will respond with yet another cluster of tariffs on another $200 billion of Chinese goods.
Markets are recoiling on the news. The AUD/USD dropped into 0.7393 on reaction, while the AUD/JPY tumbled down to 81.48 before rebounding above the 84.50 level. Risk flows have accelerated on the news, and the USD/JPY is back into 110.15 as traders pile into safe havens.
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