Column: Markets dust off Trump trade war playbook

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ORLANDO, Fla. (Reuters) – The intense Washington-Beijing tariff war of 2018 has been put on ice since Donald Trump vacated the White House, but investors are wary of how markets reacted to the original escalation as Sino-U.S. trade relations return to the agenda this week.

U.S. President Donald Trump meets with China’s President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque

The trade standoff between the two countries during Trump’s presidency saw significant financial market dislocation that year, including one of Wall Street’s worst quarters in decades, a sustained dollar rally, and a historic fall in the Chinese yuan.

The current economic, political and market environment, of course, is different from what it was three years ago. But the issues are still in play and some conditions still apply.

A “Phase 1” trade deal was signed in January last year, the…

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