Time For A Deal

Good Morning,

Have you grown tired of the phrase “Trump Tariff” yet? Trade wars across the world have been ongoing for close to a year now. But we are finally approaching a real agreement with the biggest player, China.

The most recent talks, held two weeks ago lead to a barrage of positive commentary from Presidents Trump and Xi, echoed by additional comments from respective governmental officials.

Let’s catch you up; Trump and Xi are planning to sit face to face at the end of this month to finalize a trade deal, ending the constant unknown of what may come next in tariffs. Trump has already withdrawn the 25% tariff that was to be effective March 1. He has made recent comments that they have reached agreements on currency manipulation as well as many of the barriers that prevent fair business for foreign entities in China. He also has added that China has agreed to major purchases of American agricultural goods and energy goods.

Beijing has prepared legislatively to honor some of the rumored agreements. Sources indicate that legislative actions are nearly complete that would address the issues preventing foreign businesses from investing in Chinese banks, insurers and asset management companies.

Remaining topics of resolution include defining the mechanism by which the US will verify adherence to the deal that is expected. The US will be pushing for a method to immediately re-deploy tariffs if China deviates from the terms. The US has indicated that upon a deal, at least $200 billion of Chinese tariffs will be removed, while China is pushing for the removal of the full $250 billion in tariffs.

We are in the Final Stages according to so many reports. The two presidents will tentatively sit together later this month at the Mar-a-Lago Golf Club to finalize the trade agreement.