May somebody protect us from protectionism

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May somebody protect us from protectionism

Second week
April 2018

During the last few weeks, trade tensions between the US and China broke out again. Although nobody knows exactly where a higher escalation of this incipient trade war could lead, what we have seen until now is part of a tough negotiation strategy that Trump has already used before in other matters: strike first, negotiate later.

The market is not comfortable with this negotiation style, especially when it is a matter as sensible as protectionism. So far, this has been reflected in an evident rise in market volatility and a lower appetite for risk.