On Wednesday Asian markets were mixed with a strong lead from Wall Street offset by lingering concerns about the global economy, while oil prices extended gains after Russia reassured over its intention to cut output.
Since the Donald Trump’s administration took office in January 2017, the goods trade deficit with the rest of the world has subtracted $1.6 trillion from the U.S. economy. About half of that — $760 billion — was a net wealth transfer to China on goods trade, with assorted technologies and liberal access to U.S. markets.
The US and China are due to hold their highest level talks since the two sides struck a temporary truce to their trade war. They have until 1 March to come up with some sort of compromise or tariffs will be hiked again, and we march back into a trade fight that affects us all. China watchers tell me Beijing is under increasing pressure to make a deal.
The disruption at the mouth of the Mississippi is an acute result of the US-China trade war. After US President Donald Trump imposed new tariffs on Chinese goods, Beijing punched back with duties on US exports including most of its $20bn in agricultural commodity sales.
In recent days the small good signs of progress in US-China trade war, and perhaps more importantly, the absence of new threats from President Donald Trump, have cheered investors worldwide, reversing some of the bloodletting that erased all of 2018 gains on Wall Street.
China is beginning to flesh out details of a weekend tariff truce with the U.S., after days of vague Chinese statements and a barrage of comments from President Trump and other administration officials.