Escalating trade tensions: time to worry?
- Global trade tensions have escalated, with the US administration pushing ahead with tariffs on imports from China
- The global economic impact of the US fully implementing its threatened tariffs is likely to be limited and manageable
- The introduction of blanket auto tariffs is a more worrying prospect as more economies would be affected
- The situation may not significantly escalate if the US economy starts to show signs of being adversely affected by recent measures
- Given current valuations, we think maintaining a pro-risk stance in our multi-asset portfolios makes sense as long as trade tensions do not result in a significant deterioration of global growth