An email note by UBS Global Wealth Management

  • Important not to overstate the direct impact of these tariffs on the global economy or equity markets at this stage
  • $50 billion represents only about 2% of total US imports
  • Tariffs will likely be on products that can be obtained outside of China to minimise the harm on the US

All valid points, but the market at the moment is focusing on the picture that there could be an escalation in trade retaliation between the two countries - which could spillover to bigger and badder things like a breakdown in free trade based on WTO rulings.