Trump sees no deadline for China deal, prefers it post-election

Daniel Fowler
December 7, 2019

The Dow fell for a third day and the rest of the US markets were rattled when US President Donald Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.

The president and his aides have uttered a laundry list of variations of "close" for years when promising a China trade deal that remains an elusive trophy missing from the the kept promises from the 2016 campaign he intends to tout as he seeks a second term. "In some ways I like the idea of waiting until after the election for the China deal", he said from London, where he is attending a North Atlantic Treaty Organisation summit. "In some ways, I think it is better to wait until after the election if you want to know the truth".

The president added that Washington is in a stronger negotiating position than the Chinese regime, given China's weak economic performance.

U.S. Commerce Secretary Wilbur Ross told CNBC on Tuesday that staff-level trade negotiations with China are continuing but no high-level trade talks have been scheduled.

In an interview with Fox Business on Tuesday, Vice President Mike Pence said that the president is leveraging the strong US economy in trade negotiations with China and around the world.

Trump suggested that in some ways, it might be better to wait until after the USA presidential election next November. China has counterpunched by taxing $120 billion in USA imports.

"Trump now knows he's got a strong market, high confidence, and he's negotiating from a position of strength going into December 15", McDonald said.

RBI Keeps Rates on Hold Despite Economy Fears
But debt-ridden banks have not reduced their lending rates, and so failed to pass on the benefits to consumers. This year, the RBI has already cut the repo rate by 135 basis points to a nine-year low.

But the two sides remain apart.

Investors were hoping for a new deal since new tariffs on Chinese goods start December 15th, according to the AP.

Beijing recently vowed to react strongly to Trump's signing of two human rights bills backing the Hong Kong pro-democracy movement a week earlier.

Beijing called the bill a malicious attack on China, demanded the United States keep it from becoming law and said it would act to defend its interests as necessary.

The regime also announced unspecified sanctions against at least five US -based non-profit organizations, saying that they "played an egregious role in the Hong Kong amendment bill disturbance" and were "much to blame for the chaos in Hong Kong". And his administration separately said it is considering new levies on a range of French goods in retaliation for a new digital tax.

"After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice".

"Well, we'll have to see". But it doesn't address basic disputes about trade, Chinese industrial subsidies and technology policy.

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