Just when you thought the US and China were in the process of resolving their trade dispute and becoming ’best friends’, the trade tensions have resurfaced. US President, Donald Trump, has carried out his threat to raise import tariffs on $200 billion worth of Chinese goods from 10% to 25%. China has responded by saying it will impose tariffs of up to 25% on $60 billion worth of US goods. Global markets have reacted in the way you would expect, i.e. they have declined. No one will benefit from a full-scale trade war, least of all Donald Trump, who is due to stand for re-election in 2020, and, therefore, it is in his interests to find a compromise. Donald Trump is expected to meet Chinese President, Xi Jinping, at the next G20 meeting, which is on 28 and 29 June and it is highly probable there will be an announcement that is a move in the right direction.