Note: In the process of recovering from Windows killing of my laptop. Testing new equipment with short posts…
Tariffs on China Imports Emerge as Hurdle to Trade Deal Logjam in initial agreement centers on whether the U.S. has agreed to remove existing tariffs
The logjam centers on whether the U.S. has agreed to remove existing tariffs in the so-called “phase one” deal that the two countries have been working toward—or whether the U.S. would only cancel tariffs set to take effect Dec. 15, according to people familiar with the talks.
“The U.S. negotiators will try to exact the maximum they can before doing anything” on tariff relief, one of the people said.
President Trump said Tuesday that a “significant phase-one trade deal with China could happen, could happen soon.” But he added that he is prepared to increase pressure on China if the two sides can’t reach an agreement.
“If we don’t make a deal, we’re going to substantially raise those tariffs, they’re going to be raised very substantially,” Mr. Trump said in a speech to the Economic Club of New York.
“They are dying to make a deal,” Mr. Trump said of the Chinese side on Tuesday, adding that “we are the ones deciding whether or not we want to make a deal.”
NFIB: Small Businesses Continue to Push the Economy Forward
The Optimism Index rose 0.6 points in October to 102.4, historically a
very solid reading. In terms of real economic activity. September was a
good month and October solidified that growth picture, with 8 of the 10
Index components advancing, led by GDP-producing plans for job
creation, inventory investment, and capital spending. Actual job
creation in October exceeded that in September, as small businesses
continued to hire and create new jobs. Reports of actual capital
spending increased and inventory investment improved from a modest
negative level in September. The NFIB Uncertainty Index fell 4 points in
October to 78.Reports of rising labor compensation increased and remained strong historically, and the frequency of plans to raise compensation also rose
in October. Reports of higher selling prices remained subdued, so rising
labor costs are still not pushing up inflation on Main Street. (…)
