Will China Follow Through on Phase One?

China is expected to allow importers some tariff relief in early March. Van Ahn and Company CEO Jim Emter says there’s still an added cost to buy products from the U.S. “That’s why we haven’t seen much out of China and it will really be a true test as we work into the whole circumstance as to whether they do show up to the table on phase one,” explains Emter. “If demand doesn’t show up by mid-March, you’ll start to see some traders start to panic a bit, saying the coronavirus may be impacting the potential of a phase one purchase program.” Emter says talk is one thing, seeing action is another with China. “When we see private purchases coming in at 8 a.m., that’s something. We need to see purchases before most of the market is willing to buy off on anything at this point.”