Australian SharesChina American Cold War

How will Trump’s trade non-deal impact markets?

David Llewellyn-Smith
Monday, 14 October 2019
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Via Damien Boey from Credit Suisse:

On Friday evening, the Trump administration announced a partial trade deal with China (Phase I). Key ingredients of the deal include:

  1. Delay of tariff increases that would have taken effect on 15 October.
  2. Increases in Chinese purchases of US agricultural products.
  3. Intellectual property measures.
  4. Greater currency transparency.
  5. Greater concessions from China with regards to its openness to US financial services firms.

All of this said, tariff increases scheduled for December have not been taken off the table, nor pre-existing tariffs. Discussion of issues connected to Chinese tech-giant Huawei were excluded from the partial deal, and will be dealt with in a separate process. Specific details behind intellectual property and currency transparency agreements have not been disclosed. And finally, details of enforcement have yet to be fully worked out.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.