USD moves higher on the headline
White House National Economic Council said to consider high level talks with China before July 6th.
- Staff of the NEC have contacted US government officials and China experts to gauge chances for high-level talks in the next 2 weeks
- the outreach signals the willingness by some US officials to seek the truth before $34 billion and Chinese products are hit with tariffs rather than trigger a trade war
- the actions run counter to those in the administration who favor a harder line with China. Wilbur Ross on CNBC this morning said China has to feel the pain from tariffs. President Trump has also not backed down.
In addition to the $34 billion of tariffs that will go into effect on July 6, an additional $16 billion will be enacted after a public review. China said they would match the tariffs.
Trump than directed his trade representatives to identify an additional $200 billion for 10% tariff charges
Hardlines like Peter Navarro and Robert Lighthizer would like to see structural changes in China.
Mnuchin and NEC Larry Kudlow are looking for a lowering of the trade deficit between the two nations.
The USDJPY spiked up from a new low of 109.83 to 110.03, but the price has moved back down to the 109.92 level currently.
