US-China in a trade limbo - AmpGFX
|According to Greg Gibbs, Analyst at Amplifying Global FX Capital, US-China trade policy has moved into a degree of limbo as US tariffs are scheduled to be extended from 25% on $34bn of goods to $50bn on goods on Thursday this week.
Key Quotes
“However, this is well heralded and may not have a significant further dampening impact.”
“Asia EM currencies and equities have strengthened from lows on Wednesday last week with the help of news that China Vice Minister Wang Shouwen is to visit the US for trade talks at the end of August. This has generated some hope that the US and China may find a way to ease tensions and perhaps delay the proposed US tariffs on an additional $200bn of Chinese goods.”
“Many will doubt that significant progress towards a trade deal will be reached. Trump and his trade spokespeople continue to suggest that they will not back down from a wide array of demands related to Chinese economic and trade policy.”
“Nevertheless, the outcome of these talks remains unclear and this may be sufficient to keep the market from making significant new bearish bets for Asia EM for the time being.”
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