-
US-China: Uncertainty will continue
Trump and Xi agreed at the G20 meeting to continue bilateral negotiations over the trade topics in the coming months. As practically the only concrete result of the meeting, Trump agreed that the US will not raise the currently 10% import tariff on USD200 bn of Chinese goods to 25% in the beginning of 2019 as was previously announced. Although the ceasefire will likely offer some relief to the downward growth pressure on China and the US, the high level of uncertainty will continue to weak the growth prospects. We are skeptical that the negotiations will result in a profound and sustained agreement between the two ... (full story)
