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04.07.2019 11:21 AM
What can the foreign exchange market expect from the negotiations between the US and China? Nothing!

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After US President Donald Trump openly stated that any signed trade agreement with China should be in favor of the United States, China in response said that to sign the agreement, all existing additional trade tariffs on the part of the US should be canceled. Recall, the leaders of the two countries last weekend agreed to resume trade negotiations, which were stopped in May after US officials accused China of violating previous commitments in accordance with the preliminary text of the agreement, which, according to negotiators, was almost completed. Now, trade groups from both countries are in contact, spokesman for the Ministry of Commerce of China, Gao Feng, said at a press briefing. To resume negotiations, US President Donald Trump agreed to postpone the introduction of additional tariffs on imports from China in the amount of about $300 billion and ease restrictions on Chinese technology giant Huawei. Currently, in the United States, there are increased tariffs of 25% for Chinese goods worth $250 billion.

China welcomed the decision of the United States not to introduce new tariffs, Gao said when asked how long the truce could last. However, talking about signing an agreement in the short term does not make sense. The parties put each other unrealistic conditions. Full cancellation of existing tariffs in the United States requires China, Trump will sign an agreement only if it is in favor of the United States.

Irina Maksimova,
Pakar analisis InstaForex
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