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US Struggles to Strike a Less Strident Tone
Retail sales and industrial production disappointed in both the US and China prior to the end of the tariff truce, declared by the US in a series of presidential tweets on May 5. The reaction function of the US to the drop in equities was to play down tensions on three fronts. First, a US team is expected to return to Beijing in the coming weeks. Second, Trump pushed out the decision about auto tariffs until the end of the year and hangs over the bilateral talks with Japan and Europe. Third, Treasury Secretary Mnuchin revealed that the US was close to resolving the steel and aluminum tariffs with Canada and Mexico ... (full story)