Goldman Sachs says that the rhetoric in China has intensified

US China

The firm sees a 60% chance of the US imposing new 10% tariff on final $300 billion of Chinese imports, updating their odds from 40% before this. The firm also sees a 40% chance of US tariffs on auto imports later this year, as compared with a 25% probability prior.

As for Mexico, the firm views that there is a 70% chance of tariffs on Mexican imports to kick in on June 10 with over 50% chance that they will rise again on 1 July.

In short, they expect further escalation in the trade rhetoric between the US and China - and also Mexico - over the coming weeks. More so now that China is drawing a hard line on where they stand before proceeding with any form of negotiations.

There's good reason to believe that we may not reach such a drastic stage but it is Trump after all and as such, you can't count out tariff man.