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US administration is suspicious of China nuclear weapon tests – may do so too

A US media report that the Trump administration has discussed conducting a US nuclear test.

Citing a senior administration official and two former officials familiar with the deliberations for the info:
  • The matter came up at a meeting of senior officials representing the top national security agencies May 15, following accusations from administration officials that Russia and China are conducting low-yield nuclear tests – an assertion that has not been substantiated by publicly available evidence and that both countries have denied.
  • US has not decided to conduct a test, but a senior administration official said the proposal is “very much an ongoing conversation”
More at the link here.
Another hint to issues between the US and China. Add this to the list of trade tensions, HK tensions, coronavirus blame game.
A US media report that the Trump administration has discussed conducting a US nuclear test.

US-China trade war. War of words heating up – a reminder of where tariffs are

US President Trump and others in his administration have once again been ramping up anti-China rhetoric.

Which has brought the trade war back into focus. Currently we are at a ‘phase 1’ agreement (of many more to come potentially, phase 1 barely scratched the surface). With Trump’s blaming China, for pretty much anything and everything it seems, it raises the prospect of little progress ahead on trade issues. And with the US election to come in November its likely Trump will continue to aim belligerence at China.
Via the Peterson Institute for International Economics (PIIE) a representation of where tariffs are, in summary:
US President Trump and others in his administration have once again been ramping up anti-China rhetoric.
Keep on eye out for progress, though I do not expect any. Escalation of the trade war is a negative for ‘risk’ (we saw this last week with a drop in, for example, the AUD) as Trump’s bellicose comments gained market attention once again.

US President Trump is to sign the new NAFTA (USMCA) next week – Wednesday

Reuters citing an unnamed official, Trump to sign the deal between the United States, Mexico and Canada on Wednesday during a ceremony at the White House

This United States-Mexico-Canada Agreement (USMCA) replaces NAFTA
It is yet to be formally approved by Canada.
The delay from CAD may be donut related? (kidding)
Reuters citing an unnamed official, Trump to sign the deal between the United States, Mexico and Canada on Wednesday during a ceremony at the White House

Global Times editor warns on China retaliation if US imposes December tariffs

The Chinese media is keeping up with its warning messages to Trump

The tweet from Hu Xijin reads:

“Impose tariffs, China will surely retaliate, such a trade war escalation scenario has been played several times. Washington won’t be so naïve to still believe it can crush China, will it? A trade war that doesn’t result in a trade deal will only be completely denied by history.”

It’s something similar to the message sent out yesterday here. The past two days have seen the Global Times come up with constant “reminders” to the US that if they do implement tariffs at the end of this week, it could lead to more bad blood between the two countries.

Trump: If China doesn’t do what US wants, US has lots of options

Trump on China trade talks

  • Chinese delegation coming next week for trade talks
  • Says he would like Ukraine to investigate the Bidens
  • North Korea wants to talk and US will be talking

The China comments are tame, he isn’t promising anything. That’s a bit worrisome.

Pres. Trump: China agricultural purchases is not enough

President Trump speaking at a press conference with Australia’s prime minister

  • China agricultural purchases is not enough
  • looking for complete deal with China
  • he does not need a trade yield before the 2020 election
  • China is being affected very badly US economy is very strong
  • China is eating the tariffs
  • Trump has an amazing relationship with Xi, but is having a little spat
  • signing USMCA is very important for the country
  • Australia will be a big beneficiary of China deal
  • expects sanctions to work on Iran
  • military option would work but should never have to use it
  • Iran has a lot of self-made problems

US media says Iran launched nearly a dozen cruise missiles and over 20 drones in attack on Saudi

ABC news citing an unnamed Trump administration official

  • Iran launched nearly a dozen cruise missiles 
  • over 20 drones from its territory
  • a senior Trump administration official told ABC News Sunday.
officially:
  • so far, there’s been no public accusation that Iran launched missiles
Adds ABC:
  • But a senior U.S. official told ABC News Saturday that was false: “It was Iran. The Houthis are claiming credit for something they did not do.”
  • Pompeo tweeted that there was “no evidence the attacks came from Yemen.”
ABC news citing an unnamed Trump administration official

Trump – Iran is playing with fire. China trade talks are already underway.

President Trump with some remarks crossing

  • Iran is playing with fire.
  • China trade talks are already underway over phone.
  • expects President Xi will move on some of the issues that are in dispute
(pro tip – Xi will not)
President Trump with some remarks crossing

Heads up – Trump – Abe meeting underway

A bilateral meeting between US president trump and Japan’s PM Abe Shinzo

  • At the G20
  • In Osaka
Its begun – expect some comments to follow.
Yesterday we heard there are no discussions taking place on the Japan-US defense agreement. Trump has had problems with the yen though, I wonder if that’ll come up?
A bilateral meeting between US president trump and Japan's PM Abe Shinzo
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