In recent weeks, US President Donald Trump raised the possibility of implementing tariff measures as a means of punishing China for its behaviour in relation to the Covid-19 outbreak. Trump claims to have seen evidence of a link between a laboratory in Wuhan and the outbreak of the virus. US intelligence agencies have said no such evidence exists at this time, so investors simply believed that Trump was engaging in his usual bellicose rhetoric, possibly to divert attention from the US’ lamentable response to the Covid-19 pandemic. However, there are a number of short term and longer-term considerations which suggest…

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