Are they easing up on the rhetoric?

There is a report that China has chartered its first US crude cargo since Pres. Trump's tariff threat. This is according to sources familiar with the situation.

  • China set to receive 11 million US barrels in August. That is the largest since June 2018 (according to Reuters)
  • Another 4.1 million barrels per set to arrive in September
  • The cargo is estimated to arrive by October and November

Is it a concession to appease the US and Trump administration? Perhaps.

Of course the Pres. would also prefer to have Chinese make good on their promise to buy agricultural products from US farmers. Pres. Trump is sensitive to the farmer political base, and has countered the China move by giving farmers subsidy relief. However, China seems to want to keep that card in their hand as they know the pain it causes Trump politically.