Breaking report
The US will verify that the phase one trade deal is being adhered before removing tariffs, according to a report from Bloomberg.
US officials deny there is a plan to cut current tariff rates and that the US will review and possibly trim China tariffs at a later date, according to the report. It says the two sides have an understanding that the US will review and possibly trim tariffs but not until after the election.
USD/JPY dipped on the headlines but I think there is some confusion here. In December when the deal was agreed, the US postponed planned Dec tariffs and reduced the rate on about $120B in Chinese products. That part of the deal isn't in jeopardy and there were few expectations about a further immediate or near-term cut in tariff rates.
Current tariffs maintain a 25% levy on $250B in goods and 7.5% on another $120B.
