As reported by The Wall Street Journal, this weekend saw mixed messages from the US Treasury Secretary Steven Mnuchin and the US Trade Representative Robert Lighthizer regarding the US-China trade standoff.
Key quotes
"Treasury Secretary Steven Mnuchin said Sunday morning that the Trump administration would “put the trade war on hold,” and delay tariffs on Chinese imports to the U.S., while the two countries hammer out details of a deal to reduce the yawning U.S. merchandise trade deficit with China.
And yet, hours later, U.S. trade representative Robert Lighthizer released a statement that seemed to contradict Mr. Mnuchin. Washington may still resort to tariffs, as well as other tools including investment restrictions and export regulations, unless China makes “real structural change” to its economy, Mr. Lighthizer said.
he contradictory statements from administration officials underscore differences among President Donald Trump’s trade advisers over the negotiating strategy with China, and over how to present that strategy to the public. Mr. Mnuchin and Director of the National Economic Council Larry Kudlow appeared on Sunday morning talk shows to say the talks had been constructive, with Mr. Mnuchin saying they would lead to a “substantial” reduction in China’s trade advantage.
Mr. Lighthizer, by contrast, is known as a tough, thoroughly experienced trade negotiator who has a reputation for holding a hard line. “Real structural change is necessary” on the part of China, Mr. Lighthizer said in his statement. “Nothing less than the future of tens of millions of American jobs is at stake.”
The apparent tensions within the administration follow contentious negotiations in Washington last week between Chinese and U.S. negotiators seeking to address Trump administration concerns over the U.S.’s $375 billion trade deficit with China. The U.S. had demanded China reduce its trade advantage by $200 billion or more. China came to the talks ready to step up purchases of U.S. goods, but refused to agree to a specific dollar amount.
Mr. Mnuchin played down the significance of the Chinese not agreeing to reduce the deficit by $200 billion, saying that the transactions play out company-by-company, not through a single government purchasing decision, and that “ultimately this is about industry being able to have hard contracts and deliver these goods.”
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.