After the latest round of US-China trade talks wrapped up in Beijing last week, there was optimism all around that a trade deal was within sight. Even imminent. But then over the weekend, seemingly out of the blue, United States President Donald Trump dashed all such hopes, threatening to raise tariffs on some US$200 billion (S$272 billion) worth of Chinese imports from 10 per cent to 25 per cent, effective from tomorrow.

For good measure, he also warned that in the absence of progress towards a deal, tariffs would be extended to another US$325 billion worth of Chinese goods - which would effectively penalise almost all US merchandise imports from China. US trade officials claimed that Mr Trump's sudden reversion to a hardline stance was prompted by China having backtracked on commitments made during trade talks. US Trade Representative Robert Lighthizer alleged that China tried to substantively change the text of an agreement that had been made.