Trade update: Trump would be willing to accept a “skinny” NAFTA 2.0 - Nomura

Analysts at Nomura noted that there were no key economic indicators were released today, but offered a key 'Trade' update.

Key Quotes:

"Treasury Secretary Mnuchin indicated over the weekend that the proposed $150bn US tariffs on Chinese imports would be postponed while trade negotiations continue."

"His comments followed a two-day round of talks between US and Chinese officials and lowered the likelihood of an initial round of tariffs being imposed, helping to partially defuse US-China tensions over the near term."

"Separately, Mnuchin said today that President Trump would be willing to accept a “skinny” NAFTA 2.0, i.e., an agreement that did not require Congressional approval if the current negotiations do not go as planned."

"A more limited NAFTA 2.0 would need to involve only changes to the current agreement that can be enacted by presidential proclamation and do not affect federal statutory law."

"Historically, changing rules of origin or certain tariff rates has been done by the executive branch without Congressional approval. However, relying on executive branch authority alone would likely significantly reduce the scope of any “skinny” NAFTA agreement changes."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.