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According to Greg Gibbs, Analyst at Amplifying Global FX Capital, entwined in trade dealings is the cancellation of the US-N.Korea summit as some commentators suggest that pulling back from these negotiations makes it less imperative for the US to concede ground in trade negotiations with China.

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“The US re-imposition of sanctions on Iran also feed into US trade dealings with the EU.   The sanctions open a rift between the US and the EU.   They set grounds on which the US may impose sanctions on European companies that deal with Iran; including restricting their trade with and in the USA.   The talk of tariffs on autos further threatens trade relations between the two regions. The US is set to move ahead on steel and Aluminium tariffs imposed on the EU.”

“US Sanctions against Russia, expanded in early April, can also be seen through the prism of economic and trade relations.   They have caused some disruption in aluminium trade from Russian company Rusal, and affect how the oil market sees the stability of supply from Russia and its ally, Iran.”