WH Adviser Navarro: US Pres. Trump directed trade representative to monitor whether China is buying lobsters under phase 1 trade deal…

White House Adviser Peter Navarro recently crossed wires, via Reuters, signaling a strain in the US-China trade relations. The diplomat cited President Donald Trump’s directions to analyze China’s import of the US lobsters to weigh on the risk-tone sentiment.

Key quotes

Trump has directed US Trade Representative to monitor whether China is buying US lobsters under phase 1 trade deal or he may impose reciprocal tariffs.

US Agriculture department will set up assistance program for US lobster fishermen.

Trump signed proclamation on Wednesday to protect US lobster industry.

FX implications

The news exerts an additional burden on the market’s risk-tone sentiment. After the news, AUD/USD slipped from 0.6872 to 0.6765, currently around 0.6870.