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13.05.2019 13:59

US-China trade war progressing - TDS

TD Securities analysts note that the weekend developments in the US-China trade war included more Trump tweets and China denying that they had reneged on any prior agreements.

“Liu He said such changes were “natural” and he said the remaining differences were “matters of principle” ie China is unlikely to make concessions on such changes. Meanwhile Kudlow suggested that Trump and Xi could meet at the G20 at the end of next month, a glimmer of hope. The US administration is expected to give details of tariffs on a further $325bn of Chinese exports to the US as early as today. China has promised retaliation and we could see them outline further tariffs on US exports in the next couple of days as well as the possibility of non-tariff barriers. There are no further negotiations scheduled between the US and China though Kudlow has said that China has invited Mnuchin and Lighthizer to Beijing for further talks. Given that Trump now appears to have a unified administration while China stalls, we don’t expect any quick resolution.”


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