US tariffs on China could be paused if “serious headway” is made on fentanyl – report

The WSJ reports, citing ‘a US administration official’ that US 10% tariffs on China ‘could be paused’ if “serious headway” is made on fentanyl when Trump and Xi next speak.

The pair were supposed to speak last week but the call was delayed and hasn’t been rescheduled. The WSJ says that’s because China hasn’t yet made an offer to Trump’s liking.

The report highlights that China isn’t in a rush because it doesn’t want a piecemeal deal but a larger one.

“Rather than focusing solely on a deal about fentanyl, he aims to negotiate a broader agreement with Trump that could define the tone of bilateral relations”

Instead, China could be looking to resume the “Phase One” trade deal from Trump’s first administration.

China stock markets took a break today with declines of around 1% after a strong start to the year. S&P 500 futures are down 0.45%.

This article was written by Adam Button at www.forexlive.com.