Economics

Mexico Tariffs Make China-U.S. Deal Less Likely, Analysts Say

  • Markets deal with fresh risk while supply chains upended again
  • Fragile global trade order takes another blow with Trump tweet
Markets feel tariffs are a tactic, says Massimiliano Bondurri, founder and CEO of SGMC Capital.(Source: Bloomberg)
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Prospects for a U.S.-China trade deal just became even more remote after President Donald Trump whacked tariffs that could rise to 25% on Mexico until that country stops immigrants from entering the U.S. illegally.

"A U.S.-China trade deal will be even less likely,” said Khoon Goh, head of research at Australia & New Zealand Banking Group Ltd. in Singapore. “At the end of the day, what’s the point of doing a deal if the U.S. can just impose tariffs arbitrarily?”