The temporary truce on tariffs between China and the United States could be over, injecting a new round of uncertainty into the global financial markets and suspending hopes that a resolution to the countries' trade impasse was likely.
US President Donald Trump has threatened to raise the tariff on $200 billion-worth of Chinese imports to 25% from 10% by Friday May 10. He also said that the US may impose annual tariffs on the remainder of Chinese imports, but this would involve around $325 billion of material, would require public comment and would take a few months to implement.The potential escalation in the tariff war between the two trade superpowers came as a Chinese delegation was set to meet US officials in Washington later this week. This has led many observers to suggest that Trump's comments are a tactical move by the dealmaker president in an attempt to force concessions ahead of the talks.That was probably why commodities prices have shown a relatively subdued reaction so far. After all, the same threat was used just before the US called its temporary 'ceasefire' in November on planned tariff increases,...