Phase 1 trade deal will be signed on Wednesday in Washington at 11.30 am local time (1630GMT)
- In the White House
This is largely a ceremonial affair, the real meat will be the release of the text of the agreement. Either simultaneously or soon after.
From the US side, the offer is (in summary):
- to cancel plans for the 15% tariff on US$160 billion of Chinese imports (was scheduyled for Dec 15 last year but Trump has held off pending this deal)
- to lower the 15% tariff rate on about US$120 billion of Chinese imports to 7.5%, but keep the 25% tariff rate on another US$250 billion of Chinese imports
From China:
- mucho buying of US exports (we've been posting on the numbers touted for this earlier this week)
Stay tuned to forexlive.com over the release for analysis and impact. The statements we have had from Mnuchin earlier today seem to be aimed at watering down expectations, if we are pleasantly surprised watch for a risk rally. President Trump is very attuned to stock market responses and will want to maintain the bull into the election this year.
