Asia stocks head lower after news that U.S. won't cut more tariffs

Asia stocks head lower after news that U.S. won't cut more tariffs

Asia stocks head lower after news that U.S. won't cut more tariffs

Trump's deal with China is described as the first phase of a broader one that is being sought. "There will be a 'phase two.' But this is the first time we've had a comprehensive agreement with China".

As he is about the face an impeachment trial, US President Donald Trump will be able to tout a trade deal with China.

Soybeans futures in Chicago fell 1.2 per cent, cotton slipped 1.1 per cent and hog futures we down 0.4 per cent. U.S. West Texas Intermediate crude is 0.4 per cent lower, while natural gas fell 2.8 per cent.

Trump hailed the deal as a step toward a "future of fair and reciprocal trade" and called it a "historic" agreement.

"What's fascinating is it takes a while before each country figures out what it really will do, what's in its interests and how they are going to pursue the future under that deal", he said.

In addition to farm goods, China is expected to buy more manufactured products, energy products and services from the U.S. Lovely said it's possible for China to increase its purchases by $200 billion, but warned it could have a disruptive effect on global trade flows.

"Platinum is being largely driven by technical moves as we broke through the highs established in September 2019, forcing some shorts to cover", said Daniel Ghali, commodity strategist at TD Securities.

But this agreement left unresolved numerous complaints - notably, the way the Chinese government subsidizes its companies - voiced by the Trump administration when it started the trade war by imposing tariffs on Chinese imports in July 2018.

Officials have said before they will release the text of the 86-page agreement in conjunction with the signing and denied that there's a plan to cut duties further. The market could sell-off in the wake of the signing due to a new reality; the Phase One deal is far less than the market was expecting.

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The U.S. doesn't have federal regulation like the GDPR, although some states, notably California, have enacted their own laws. It also has written to Margrethe Vestager, the European Commission executive vice president, urging her to take action.

U.S. President Donald Trump calls the signing of phase one trade agreement a "momentous event" in his opening remarks, and says negotiations were "tough, open and respectful".

"The US-China phase-one deal is essentially a trade truce, with large state-directed purchases attached", economist Mary Lovely said in an analysis.

But tariffs on hundreds of billions of dollars in imports remain in place, leaving American consumers and businesses to foot the bill.

Mr. Trump is scheduled to host a team of Chinese negotiators in a ceremony marking an official suspension of the tariff war that had been escalating between the two countries since 2018.

The deal is meant to ease some USA economic sanctions on China while Beijing would step up purchases of American farm products and other goods.

USA companies have paid $46 billion in tariffs since Trump began restructuring relationships with almost all of Washington's major trading partners, US data showed. He met with USA business leaders Tuesday.

But many economists question whether United States farmers have the capacity to meet that demand. But the US economy has remained strong, with historically low unemployment, relatively low inflation and record-setting stock market performances.

The deal also restores a twice-yearly dialogue process that previous administrations conducted regularly but that Trump scrapped.

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