We had in-depth, candid talks
Talked about bilateral tariffs under new circumstances
Talked about possible extension of tariff suspensions, other matters
Talked about concerns of trade, economic issues
U.S. talked about on recent tariff adjustments
Chinese side voiced concerns
Both sides agreed to maintain stability of tariff levels
Discussed mechanisms on trade, investment
Both sides discussed trade, economic concerns of each other
We noticed U.S. roll out of restrictive measures on China
China raised representations on Section 301 probes
This is generally good news, particularly the 'consensus' part. I tend to think these are the basically the headlines and part of a deal that would have been announced with Trump and Xi. That was going to be a small event in any case and now there are strong signs that summit will be cancelled. Trump is now fighting a war that he's improvising and asking China to send war ships to patrol the Strait of Hormuz.
The market is in a good mood today and this will further help. S&P 500 futures are up 63 points to 6699 while the US dollar is sagging across the board. US 10-year yields are down 5.1 bps to 4.23% as the market senses that Trump is looking for an off-ramp.
