It’s ‘Phase 1’ trade deal day, marking the first signature of the historic US-China trade agreement. | Source: AP Photo/Susan Walsh
The Dow Jones Industrial Average (DJIA) had a nervy start on Wednesday, opening almost completely flat. President Trump is expected to sign the ‘phase one’ trade deal today and in a ceremony with Chinese Vice Premier Liu He. But critics say the lack of real enforcement means the deal will have little impact.
The Dow Jones Industrial Average (DJIA) opened with a whimper on this historic Wednesday. President Donald Trump is expected to sign his “monster” trade deal with China today, ending months of speculation and conflict. But traders are concerned about a glaring hole in the agreement.
There is no concrete way to enforce it.
Although Treasury Secretary Steven Mnuchin has promised an enforcement provision, it centers around tariffs, and there’s nothing to stop China retaliating, which would return both sides to the status quo, according to Reuters.
Trump – China deal is “Theater of the Absurd”
Analysts and traders are increasingly concerned that the phase one agreement contains “double standards” and will have little impact. Ipek Ozkardeskaya of Swissquote Bank wrote:
The US – China trade deal is like watching a live show in the theater of the absurd… The risk here is that the double-standard agreement could provide a weak basis for the future negotiations, impair the benefits, or even spoil the deal.
Nervous stock market open for the Dow Jones
The Dow Jones opened flat today after a lacklustre session in Europe and Asia overnight.
The Dow Jones (DJIA) opened almost flat on Wednesday. Source: Yahoo Finance
Is the trade deal enforceable?
As part of