Trade Conflict Rhetoric Escalates Again Today, After the Softer Tones We Heard Yesterday

Yesterday we heard some softer tons from Mexico and China, but the tones have increased again today

Written by: Skerdian Meta • Thursday, June 6, 2019 • 1 min read

• Last updated: Thursday, June 6, 2019

As we know, the trade conflict has escalated between US and China and another battle front has opened with Mexico. Yesterday we heard some softer tones from China and Mexico, but today the tones have increased again. Donald Trump started the ping-pong first:

Donald Trump’s Comments

Mexico has made progress in tariff talks but needs to do more
We’ve told Mexico the tariffs will go on if progress is not made
Mexico has to ‘step up to the plate’; progress being made
Talks are ongoing with China on trade
Tariffs on China could be raised by another $300 billion if necessary
China wants to make a deal, Mexico wants to make a deal badly

Comments by China’s foreign ministry

China says will have to adopt necessary countermeasures if US decides to escalate trade tensions
Future direction of trade talks depends on the US
Trade war will hurt US economy, employment
US claims of China taking advantage in bilateral trade are groundless
Says will fight to the end if US decides to escalate trade tensions
US’s large-scale measures on Huawei are “astonishing”
US changed position in talks, so they shouldn’t accuse China

Trump said that trade talks are ongoing with China, but with these tones I don’t think they will get anywhere. Actually, I think that trade talks have ended for the time being, as China has commented.

If the US goes ahead with another $300 billion in tariffs on China, then there’s no way back. Unless China bends over completely, which they might do as the Chinese economy has slowed considerably.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.