Following the US Trade Representative’s (USTR) announcement of the delay to the tariffs imposed on China until December 15 on Tuesday, the Goldman Sachs analysts cite two key reasons for the latest USTR move, in its latest client note.
“We believe the decision to delay implementation of tariffs on some goods was driven by concerns over the political risks associated with imposing tariffs on consumer goods before the holiday season as well as the recent deterioration in the US equity market.
To the extent that this is what drove the decision, this suggests that there is a limit to how far, or at least how quickly, the White House might escalate trade restrictions.
Announcement appears to provide incremental (and market-friendly) information as to how the White House is approaching trade policy, we do not believe it represents a substantial shift in the US-China.”
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