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Sabers Rattle and Tariffs Fly - The latest in the US-China trade fight

May 13, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • It was not so long ago it seemed as if a trade deal was at hand, about to be completed, but what a difference a few days make
  • The US claims China backtracked on a number of key aspects of the trade deal both sides agreed to, especially in the realm of intellectual property protection, a key gripe of the US about China
  • The Chinese said they could not sign an agreement that had requirements for changes to its laws
  • The Chinese said they would make decrees that included all the stipulations that the US wants; the US will not accept that
  • President Trump hiked tariffs and then talks with China last week yielded nothing
  • Today the Chinese introduced new 25% as they said they would, despite a warning from President Trump against taking that action
    • Notably absent from the list are aircraft and US crude oil

 

US-China

  • In response to Trump's threats, Chinese state media had the following to say:
    • "The Chinese side hopes that the U.S. side will return to the correct track of bilateral economic and trade consultations, and work with China to move toward each other and strive to reach a mutually beneficial and win-win agreement on the basis of mutual respect.”
    • "Facing the carrots and sticks of the U.S., China has provided an answer: our door are open to talks, but we will fight till the end if the U.S. wants to"
    • "The trade war waged by the U.S. is just another obstacle in China’s development - it is not a big deal"
    • "Whether the U.S. wants to talk or fight, or make other moves, China has a well-equipped tool box, and has well-prepared response plans"
  • President Trump said the 2 parties were 95% complete on a deal, but China walked away
  • President Trump said today that he and President Xi of China will meet at the G-20 Summit in Osaka, Japan in late June
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