US Active Tariff Discount Source Consideration

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      Another high-level telephone call between China and the United States was accompanied by Trump's tweet. The offshore RMB exchange rate rebounded sharply yesterday, but analysts pointed out that the sudden delay in tariff imposition on some commodities in the United States was more for its own sake than a softening of China's attitude and the prospects for Sino-US negotiations remained bleak.
Analysts also pointed out that the market's expectation of the long-term complexity of Sino-US negotiations is becoming more and more evident. The substantial benefits of the US delay in imposing tariffs on some goods are limited. The impact on the RMB is expected to be relatively short. It is also difficult for the RMB to return to the level below the 7-yuan level. Next, we need to focus on the results of the re-call between China and the US, including September. Will the Sino-US negotiations continue?
"Delaying tariffs on some commodities in the United States helps to improve tension, but it doesn't solve the problem in essence," said Xie Dong-ming, an economist at OCB in Singapore. "It feels more like the reason for selfishness in the United States, because all the products delayed are holiday-related products, which is the failure of the RMB. Recovering the essence of the 7 yuan barrier.


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