The Daily Update - Ongoing Tariff Talks

Donald Trump on Friday said that trade talks between the US and China would continue into the future, with tariffs and the proposed increase in them, being removed or not, all dependent on the outcome of the negotiations. Trump tweeted ‘We are right where we want to be with China. Remember, they broke the deal with us & tried to renegotiate. We will be taking in Tens of Billions of Dollars in Tariffs from China. Buyers of product can make it themselves in the USA (ideal), or buy it from non-Tariffed countries...’ Despite the setback in the talks last week, there has not been a complete breakdown, as Trump also acknowledged in a tweet, praising his relationship with his Chinese counterpart Xi Jinping. Trump tweeted ‘Over the course of the past two days, the United States and China have held candid and constructive conversations on the status of the trade relationship between both countries’.

However, the Chinese press seemed more defiant to the American stance. The People's Daily, the voice of the government, believed the U.S. should take full responsibility for trade-talk setbacks because it raised tariffs on China's products. This view was mirrored by the nationalist Global Times, whose editorial note said that the country had no reason to fear a trade war. It stated ‘The perception that China cannot bear it is a fantasy and misjudgement’ before going on to say ‘If they weren’t being seriously provoked, the Chinese people would not favour any trade war. However, once the country is strategically coerced, nothing is unbearable for China in order to safeguard its sovereignty and dignity as well as the long-term development rights of the Chinese people’.

And on Friday Uber’s IPO was launched, the company raising just over USD8bn after selling 180 million shares for USD45 each. The stock opened at USD42, down about 6.7% from issue price, and at one point touched USD 41.06. After the initial opening sell off it did try to stage a rally, nearly reclaiming the loses, before the sellers overwhelmed again, at the close trading at 41.57, down 7.62%. At time of writing the stock is down another 1.4% in pre-market trading.

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