Chinese trade source: December 15 tariffs will not be imposed by the US – Fox Business

Following a downbeat news from Reuters that the “Phase One” deal between the United States (US) and China is less likely to take place before December, Fox Business came out with a story, relying on Chinese trade source, which says that the US will not impose additional tariffs on Chinese goods scheduled to rise from December 15. The piece also cited that the US diplomats sought Chinese President Xi Jinping’s travel schedule to arrange for the trade deal sign. Previously, the US President Donald Trump was cited by the Fox News saying that Iowa as the place for the “Phase One” deal.

Key quotes

U.S. officials have sought Chinese President Xi Jinping's travel schedule to see where a possible trade deal signing could fit in.

The Chinese are working to get existing tariffs removed or lowered, and Chinese trade sources told FOX Business that China was told Dec. 15 tariffs will not be imposed by the U.S.

The phase one pact would include Chinese purchases of American farm goods, rules to deter currency manipulation and some provisions to protect intellectual property and open up Chinese industries to U.S. firms.

The signing may not take place until December. Trump and Xi were due to meet at this month's gathering of Asia-Pacific leaders in Chile but the event was canceled due to protests.

FX implications

Given the present uncertain market conditions surrounding the US-China trade deal, news like this could help build the risk sentiment. As a result, Antipodeans and commodities might see a bit of improvement after the recent weakness while safe-havens could witness the pullback. However, no major reaction to the news has been witnessed by the press time of the Asian session start on Thursday.