US Agriculture Sec. Perdue: US must be understanding if China coronavirus impacts trade pledges

Speaking to reporters at a cattle convention in Texas late Wednesday, the US Agriculture Secretary Perdue said that the US should be more tolerant and understanding if the infectious coronavirus hampered China’s ability to increase purchases of American farm products under the countries’ recently signed trade deal, per Reuters.

Key Quotes:

If they’re really trying and it really just blows the economy out of the water, then we would have to be understanding of that.

There are force majeure type of things ... that I think you have to be sensitive to.

According to Reuters, the phase one trade deal text contains a disaster clause to allow for delays, saying: “In the event that a natural disaster or other unforeseeable events outside the control of the Parties delays a Party from timely complying with its obligations under this Agreement, the Parties shall consult with each other.”

Market Implications:

The cooperation being extended from the US on the China coronavirus situation likely adds to the buoyant risk tone seen so far in Thursday’s Asian trades.

USD/JPY rallied in tandem with Wall Street and now looks to take out the 110 resistance while the Aussie stands resilience to the downbeat Australian