Published: Wed, December 04, 2019
Economy | By

Dollar falls broadly on renewed U.S.-China trade tension

Dollar falls broadly on renewed U.S.-China trade tension

Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars.

With a flurry of trade threats across three continents in the span of 24 hours, President Donald Trump reminded financial markets that he's comfortable heading into an election year using tariffs as his main source of worldwide economic leverage.

U.S. Commerce Secretary Wilbur Ross, speaking to Reuters on Tuesday, rejected any deadlines for a deal and launched a fresh attack on Chinese telecom equipment giant Huawei, accusing it of telling suppliers to move operations overseas to skirt U.S. sanctions.

USA negotiators expect a phase-one deal with China to be completed before American tariffs are set to rise on December 15, the people said. Outstanding issues in the talks include how to guarantee China's purchases of US agricultural goods and exactly which duties to roll back, they added.

Approval by the U.S. House of Representatives of the Uighur Act of 2019, which still requires passage by the Republican-controlled Senate before being sent to Trump, has angered Beijing and further strained an already testy relationship.

But sources familiar with the talks say the two sides are still wrangling over the details including whether existing US tariffs on Chinese goods will be removed and how much in additional USA agricultural products China will buy. "I watch jobs. Jobs are what I watch; I watch making the proper deal", he said. Lighthizer said the USMCA deal "would not have happened if it wasn't for Jared". "There is hope, as long as it is based on mutual respect and equal consultations", according to Phoenix TV.

"In some ways I think I think it's better to wait until after the election with China", Trump told reporters in London where he was due to attend a meeting of North Atlantic Treaty Organisation leaders. The Trump administration recently touted a "phase one" deal with China, though the signing of that deal was canceled last month, and tensions also persist between the USA and China due to the civil unrest in Hong Kong. In response, China has threated to place sanctions on USA companies.

China foreign ministry spokeswoman Hua Chunying on Wednesday blasted US lawmakers as "too ignorant, too shameless and too hypocritical".

But Chinese officials have never confirmed an agreement was imminent and have said the talks remain ongoing.

The yield on benchmark 10-year U.S. Treasuries fell as low as 1.6930% overnight, the sharpest fall since May and was trading at 1.7105% on Wednesday. A report from Chinese state media earlier had indicated the government would soon publish a list of "unreliable entities" if the Xinjiang bill passes that could lead to sanctions against USA companies.

Trade talks are not expected to be impacted by two measures recently initiated by Congress.

Vice Foreign Minister Qin Gang made "stern representations" to William Klein, the USA embassy's minister counselor for political affairs, and urged the United States to stop interfering in China's domestic affairs, state TV reported.

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