US-China trade deal by end of Q2? – Danske Bank

Jakob Christensen, chief analyst at Danske Bank, points out that the US-China trade talks resumed yesterday with the US delegation led by finance minister Mnuchin and trade representative Lighthizer had a ‘productive’ dinner with the Chinese delegation ahead of a full day of talks today between the two sides.

Key Quotes

“Larry Kudlow, Trumps economic advisor, tempered expectations, saying the US is willing to extend the process for weeks or months in order to get the right deal for the US.”

“We think that discussions are proceeding well, but that we may see hiccups on the final stretch of talks given the difficulties in finding an adequate enforcement mechanism in a potential deal. However, we expect the discussions to be completed before the end of Q2 ahead of the beginning of the US electoral campaign.”