Once again Donald Trump’s tariffs imposed on China are the main talking point, with the promise of escalating the 10% selective tariffs to 25% at the end of the year. As warning shots go, this is a pretty stern one, and few people will bank on the US President having a change of heart unless China either makes some concessions or hits back with retaliatory tariffs of its own. China has had things their own way for a while, and the truth is that both parties need each other. Where there are inequities in the trading arrangements between these two superpowers they do need addressing. China though, tends to have an extremely long-term view, and they will already be planning for way beyond Trumps tenure in office, even if he does return for another four years. What China can’t do though, even with their carefully policed internet, is to pretend this hasn’t happened. This alone will force them into considering whether some symbolic reform (in the short term at least), may be the lesser of two evils. If some sort of agreement can be reached the Asian & US stock markets should start picking up again, but until then we will be taking a more pragmatic approach, and booking our profits when we see them.