Positioning Asean for a trade war

Singapore

THE tit-for-tat trade spat between the world's two largest economic powerhouses has sent shockwaves through the global economy, roiling financial markets. Staying true to his campaign promise, US President Donald Trump has upped his protectionist rhetoric and has successfully set the stage for a possible trade war with China.

Beijing's and Washington's war of words has escalated rapidly over the last week with Mr Trump announcing that he would order an additional US$100 billion in tariffs on Chinese goods. In response, China has warned of its intention to impose tariffs on crucial US exports such as soybeans, aircraft and automobiles.