While a Chinese delegation is still scheduled to visit Washington as planned this week, with talks to take place Thursday and Friday, U.S. Trade Representative Robert Lighthizer told reporters Monday that the Trump administration plans to increase duties on Chinese imports at 12:01 a.m. on Friday, accusing Beijing of backpedaling on commitments it made during negotiations.
U.S. and China had been making substantial progress on a trade deal, but in the past week China has reneged on some of its promises:
“We felt we were on track to get somewhere. Over the course of last week we have seen an erosion of commitments by China,” Lighthizer said, adding that significant issues remain unresolved, including whether tariffs will remain in place.
The result, more than half of the intraday gains have been erased already…
Futures have closed now (1400ET) but Stock ETFs continue to drift lower…
Trade-sensitive stocks are pushing back towards the lows of the day session…
Treasury yields tumbled to the lows of the day…
Yuan also slipped…
More problematic – or perhaps he just had to say that – Treasury Secretary Steve Mnuchin added that the market’s reaction was not a factor in China talks.
No PPT?
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