Commodity strategists are cautiously optimistic that Donald Trump’s trade policies against China will not be as aggressive as feared, as concerns ease about a full-blown trade war that had threatened to hit raw material prices.

The US president used his first few days in office to announce tariffs of as much as 25 per cent on Mexico and Canada from the start of February and threatened to hit China with a 10 per cent levy on all imports in retaliation for the flow of fentanyl from the country.