A note by ING's research team

Says that with Trump's decision to impose steel and aluminium tariffs as well as a tariff package on imported goods from China, global trade policy has shifted towards the realms of a protectionist world.

But they say that if countries do not retaliate to the initial US measures, the economic effects will be limited - though they single out China as the biggest loser, estimating a 0.6% GDP loss over two years.

However, they view that a risk of a "tit-for-tat battle" is more likely to materialise instead.

"While reports suggest US and Chinese officials may initially be looking to take a more diplomatic approach, the reality of unsuccessful and challenging trade negotiations means the prospect of significant countervailing measures being imposed by Beijing - beyond the trivial $3 bn retaliatory tariffs on imported goods from the US already announced - is fairly high", ING argues.

"Let's just do one for the cameras, aye?"