What investors need to know about the U.S.-China trade accord

Oct 15 18:10 2019 Print This Article

On Oct. 11, U.S. President Donald Trump announced that the U.S. and China have agreed in principle to what is being characterized as the first phase of a trade accord. Here are seven key takeaways about the agreement:

 

China has not yet called this a ‘deal’

It is unclear whether or not both countries believe a deal has been reached. The U.S. announced it has agreed to halt the planned Oct. 15 increase in tariffs on $250 billion in Chinese imports from 25% to 30%.1 It announced that, in return, China agreed to purchase between $40 billion and $50 billion in U.S. agricultural products.1 The Chinese local media has sounded more cautious and has characterized the actions over the weekend as “progress” being made. The word “deal” has not been used in media reports. And it was reported Oct. 14 that China would like to have another round of talks before inking this agreement. All of this suggests China may have a very different perspective on where trade negotiations currently stand.

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Trimark Investments Blog

As one of Canada’s leading investment management companies, Trimark Investments is singularly focused on putting investors' interests first. Invesco Canada offers a diversified suite of investment solutions to investors across the country and around the world. The blog is comprised of portfolio managers, who are often asked about their views on various investment-, market- and economy-related topics and how these views impact investment decisions. Trimark Investment blog intends to answer the questions Invesco Canada is frequently asked.

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