China wants tariff rollback for phase 1 trade deal

Clay Curtis
December 5, 2019

"We may see a lot of money managers locking in their gains for the year because they've done very, very well". He gave no indication when the deal would be finalized.

Chinese negotiators have called for the U.S.to roll back tariffs as part of a phase one agreement, something President Trump has said he won't do.

Ross's tough talk on China came just hours after Trump tweeted that the USA will "restore" steel and aluminum tariffs on Brazil and Argentina.

"The Chinese are always negotiating".

"If the China tariffs go into effect, I think you could have something in the neighborhood of a 5% pullback", Keith Lerner, chief market strategist at SunTrust Bank, told Yahoo Finance's "The First Trade". "We'll see what happens".

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That was before China reacted with outrage to Trump's decision to sign legislation supporting human rights in Hong Kong. Beijing warned it could retaliate.

United States senate finance committee chairman Chuck Grassley told reporters on Tuesday that Beijing invited USA trade representative Robert Lighthizer and treasury secretary Steven Mnuchin for in-person talks in Beijing.

Trade experts and people close to the White House told Reuters last month, however, that signing a phase one agreement may not take place until the new year as China pressed for more extensive rollbacks of tariffs. Trump first waved the big stick by re-imposing tariffs on imports of steel and aluminium from Brazil and Argentina in retaliation for alleged currency dumping, before Ross told Fox Business that Trump would "certainly" levy further tariffs on Chinese imports, as scheduled, if China doesn't offer more concessions on trade by the deadline of December 15.

"Dollar falling apart on headlines that Trump will increase tariffs on China if there is no deal by Dec 15 according to Commerce Secretary Ross", says Viraj Patel, a foreign exchange analyst with Arkera.

It said there was a "reasonable choice" for Trump to roll back some tariffs for the first deal and leave others for later, to "save the optics of the deal in the US political climate and save the phase one deal".

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