The escalating threats over tariffs between the US and China have dominated the headlines this week. But next week could bring the more positive news of a ‘preliminary’ deal on NAFTA. Reports suggest that any agreement would be limited to content requirements for autos, leaving other contentious issues for future negotiations. Nothing is finalised yet. But, following the earlier compromises on steel and aluminium tariffs, that would be another sign the Trump administration is willing to back down on its threats in return for relatively modest concessions. That won’t go unnoticed in Beijing.
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