The US President Donald Trump on Sunday welcomed a “cash” payout to American farmers before the Thanksgiving Day holiday that he attributed to China tariffs, but that money actually is part of a U.S. government aid package, as said by the Reuters.
The news relies on the US President’s latest tweets while also citing the latest trade talks between the United States (US) and Chinese diplomats conducted on Friday.
Key quotes
“Our great Farmers will recieve (sic) another major round of ‘cash,’ compliments of China Tariffs, prior to Thanksgiving.”
“The smaller farms and farmers will be big beneficiaries. In the meantime, and as you may have noticed, China is starting to buy big again. Japan deal DONE. Enjoy!”
“The payments are the second part of a three-tranche $16 billion aid package announced in May to compensate farmers for the U.S.-China trade war.”
FX implications
This adds to the market’s recent trade positive sentiment which relies mainly on the US-China story. As a result, Antipodeans will have a good time while the safe-havens might have to witness further weakness.
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