Danske Bank's analysts note that the U.S. President Trump made another surprise move in the trade war yesterday by putting 10% tariffs on another USD300bn worth of Chinese exports.

• “Interestingly, he also tweeted that the U.S. looks forward to continuing the "positive dialogue" with China on a comprehensive trade deal.
• The tariff announcement was probably a response to the high-level trade talks in Shanghai this week, where China likely showed little movement. Even so, a White House statement called the talks "constructive". The last time it used this word was right before the previous tariff increase in early May, so it might be a warning sign in the future. Talking to reporters yesterday, Trump warned that tariffs could go to 25% or higher.
• It is quite clear that China does not agree with Trump that the dialogue is positive.”