Trump: Will be able to report on whether China is fulfilling its obligations under trade deal in about a week or two
|Speaking at a White House event, the US President Donald Trump says he will be able to report on whether China is fulfilling its obligations under the phase 1 trade deal in about a week or two.
Key comments
- Will be able to report on whether china is fulfilling obligations on trade deal next week or week after.
- China ‘may or may not’ keep the trade deal.
The news follows an earlier report in the news this week whereby the Trump administration is said to be “turbocharging” an initiative to remove global industrial supply chains from China. Reuters reported that the US is weighing new tariffs to punish Beijing for its handling of the coronavirus outbreak, according to officials familiar with US planning.
Economic destruction and the U.S. coronavirus death toll are driving a government-wide push to move U.S. production and supply chain dependency away from China, even if it goes to other more friendly nations instead, current and former senior U.S. administration officials said,
– Reuters reported.
Market implications
This will not be favourable to the commodity complex for which AUD trades as a proxy, especially sesnatove when the news is directly related and troublesome for Chinese business and its economy. AUD has been sliding below the 0.64 handle on the sour sentiment. The USD has been known to benefit on such rhetoric:
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