We're just a weekend removed from Friday’s partial trade deal, and China is already reneging on the agreement. President Trump said last week was just “phase one” of a two-part deal, which (hopefully) should result in a trade war de-escalation.
But now, China wants to talk again before writing everything in stone. Vice Premier Liu He is expected to meet with the U.S. one more time before the end of the month to iron out the details.
Bloomberg News – the same media outlet that first reported a partial trade deal – revealed in a new report that China also wants the U.S. to delay a December tariff hike. To Huo Jianguo, a former Chinese commerce ministry official, it’s something that the U.S. must do.
“The U.S. must concede on its December tariff threat if they want to sign a deal during the APEC summit. Otherwise it would be a humiliating treaty for China,” he said.
“The U.S. has definitely shown some good gestures, but we shouldn’t exclude the possibility of another flip-flop.”
The “flip-flopping,” investors have gotten used to. Since the trade war started over a year ago, both sides have walked-back agreements several times now.
And though the effect on the economy has been less severe than many analysts initially expected, the “will they, won’t they” negotiations have run the market ragged. Uncertainty managed to worm its way into equities once again this morning.
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