Will Trump roll back tarrifs?

By in Australian Dollar, China American Cold War

| 14 comments

See the latest Australian dollar analysis here:

Macro Afternoon

FT says he is mulling doing so:

Trump administration officials are debating whether to remove some existing tariffs on Chinese goods as a concession to seal a partial deal that would pause the trade war with Beijing as early as this month.

According to five people briefed on the discussions, the White House is considering whether to roll back levies on $112bn of Chinese imports — including clothing, appliances, and flatscreen monitors — that were introduced at a 15 per cent rate on September 1.

…But Washington would likely expect something in return, including beefed up provisions on the protection of intellectual property for US companies, greater certainty on the scale of Chinese purchases of US farm products, and a signing ceremony for the agreement on American soil.

Looks like more talk to support marketds to me. Such concessions are a part of phase two negotiations…

David Llewellyn-Smith

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.

Latest posts by David Llewellyn-Smith (see all)

Comments

  1. DPM

    we all know what the deal will eventually be. It will be pretty much be back to where we were before this joke began. And it will be the most amazing deal you have ever seen. Some say they worlds best deal.

  2. NikolaMEMBER

    China senses Trump is under pressure so they will play hard to catch. My guess (and hope from investment point) is Trump will remove some tariffs and Phase 1 will be signed.

    • SachaMEMBER

      I’m so sick of this zig zag. Been going on for 2 years now. I hope it blows up in his face so I can go short the index futures. Missed out on the current rally, so there.

  3. interested partyMEMBER

    Well…..one thing to think on is the time being burnt while the talks are ongoing. How many jobs are being returned to the US while the game is in play…..and that means every day delayed is a stronger USA. I don’t see him folding anytime soon. The situation as it stands is wind in his sails….why would he stop.

    • DominicMEMBER

      Why would he stop?

      He needs to get re-elected and for that to happen he needs to avoid recession and the markets cratering

      • interested partyMEMBER

        Avoid recession? We will have to wait and see if that happens. The Dems, Wall street, and the corrupt mockingbird media are all sweating on that actual outcome……go figure.