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Editor’s Note: This copy of Morning Barter is appear weekdays at 10 a.m. POLITICO Pro Barter subscribers authority absolute aboriginal admission to the newsletter anniversary morning at 6 a.m. Learn added about POLITICO Pro’s absolute action intelligence coverage, action accoutrement and services, at politicopro.com.

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— A above Treasury Department official says it’s absurd the All-embracing Monetary Fund will ancillary with the Trump administering that China is manipulating the yuan.

— The United Kingdom’s new barter secretary is in Washington this anniversary to accommodated with arch Trump administering admiral to altercate fast-tracking a mutual barter deal.

— House Energy and Commerce Committee leaders are advancement USTR to bead accent from the USMCA’s agenda barter affiliate that protects agenda firms from lawsuits.

IT’S WEDNESDAY, AUG. 7! Welcome to Morning Trade, breadth your host is planning a cruise to San Antonio and the surrounding breadth abutting month. Any recommendations, must-sees or barter tips to share? Let me know: [email protected] or @sabrod123.

DON’T EXPECT IMF TO BACK TRUMP ON CHINA CURRENCY BATTLE: The Trump administering appears to accept added new belief to the Treasury Department’s analogue of bill abetment in adjustment to adduce China, Gary Hufbauer, a arch adolescent at the Peterson Institute for All-embracing Economics, told Morning Trade. Still, the move to characterization China a bill architect “is not activity to canyon aggregation at the IMF,” he said.

Treasury assured the People’s Bank of China was accusable of abetment because it didn’t arbitrate to abutment the currency, alike admitting it had “plenty of banknote on hand,” Hufbauer said. “That’s a new criteria, aloof affectionate of invented overnight,” in accession to the three added belief Treasury has acclimated back 2015 in its semiannual address on adopted barter bulk practices, he said.

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Hufbauer, who served in the Treasury Department in the backward 1970s, doubted the IMF would achieve China’s contempo accomplishments bulk to bill abetment beneath Article IV of the organization’s charter. “It’s not an action by China with an attack to get an arbitrary advantage in consign markets,” he said. “What happened is the bazaar collection the RMB down, acknowledgment to the blackmail of a new annular of tariffs.”

International horse-trading: It’s accessible the United States ability authority up a vote on the European Union’s appointee to be the abutting IMF managing director, World Bank arch controlling Kristalina Georgieva of Bulgaria, “until it gets assurances that somehow the duke of the Chinese will be rapped,” Hufbauer said. “The U.S. does accept advantage at this moment.”

Otherwise, it’s acceptable the U.S. appeal for IMF burden on China could abandon in the organization’s huge bureaucracy, never to be heard from again, Hufbauer said. That’s decidedly accurate if China keeps its bill from depreciating decidedly beneath 7 yuan to the dollar to affluence tensions with the U.S., he added.

EXPECT MORE UNPREDICTABILITY WITH CHINA: Investors took a breach from abundant affairs on Tuesday as China intervened to accumulate its currency, the yuan, from coast further. But traders and money managers said declines could resume at any moment accustomed Trump’s capricious attributes and the astronomic stakes complex in the showdown amidst the world’s two better economies.

Close assemblage of White House China action said they accept the accommodation to characterization China a architect acceptable came anon from Trump. “He didn’t charge anyone to argue him it was a acceptable idea. He was attractive for an excuse,” said Derek Scissors, a China able at the American Enterprise Institute who has brash the administration.

Trump accessible for the continued haul: The admiral signaled Tuesday he was accommodating to dig in for a continued barter war, tweeting he would accommodate added barter aid for U.S. farmers aching by China’s backfire abutting year if necessary.

China pushes back: Beijing on Tuesday alone Trump’s assurance that it’s manipulating its bill and accused the U.S. of protectionist behavior that hurts the all-around economy. The People’s Bank of China additionally said the U.S.’s move “will not alone actively attenuate the all-embracing banking order, but additionally activate banking bazaar turmoil.”

A LOOK AT TRADE WAR COSTS: Free barter accumulation Tariffs Aching the Heartland is absolution new numbers today that appearance U.S. businesses paid about $6 billion in tariffs in June, the aboriginal abounding ages that tariffs on $200 billion account of Chinese appurtenances added from 10 percent to 25 percent. The tariffs paid were up $2.5 billion — a 74 percent admission compared to June 2018.

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Tariffs Aching the Heartland acclaimed that numbers will acceptable alone abound as some shipments were on the baptize in aboriginal June and alone faced the 10 percent tariff.

The group, application Census data, additionally begin that U.S. exports and imports to and from Beijing abide to drop. Imports from China accountable to Section 301 tariffs beneath $20.9 billion from June 2018 to June 2019. Meanwhile, U.S. exports to China, which faced castigating tariffs, beneath by $24.5 billion during that aforementioned period.

U.K. TRADE SECRETARY IN WASHINGTON TO TALK TRADE DEAL: The U.K.’s new all-embracing barter secretary, Liz Truss, is in boondocks for a four-day appointment to columnist advanced on arresting a barter accord with the United States. Truss’ cruise signals the U.K.’s able admiration to cull calm a barter accord now that British Prime Minister Boris Johnson has taken over and the Brexit ambition date is approaching.

On the calendar: U.S. Barter Representative Robert Lighthizer was appointed to accommodated with Truss on Tuesday afternoon, a USTR agent confirmed. Her appointment will additionally accommodate a affair with Commerce Secretary Wilbur Ross, a accessible accent at The Heritage Foundation on Thursday and affairs with U.K.-U.S. business assembly in Washington and New York City.

Can they negotiate? Johnson has bidding a admiration to accommodate an acceding with the U.S. afore the U.K. leaves the European Union on Oct. 31. But above British Barter Secretary Liam Fox has said that could abjure European law.

Senators abutment a bilateral: Last week, a accumulation of 44 Republican senators — including Sens. Tom Cotton, Chuck Grassley, Rob Portman and Joni Ernst — wrote to Johnson to action abutment for the U.K. as it leaves the EU.

“[I]f Britain leaves the EU with no deal, we will assignment with our administration, your government, and our accompany in the EU to abbreviate disruptions in analytical affairs such as all-embracing air travel, banking transactions, and the addition of medicine, food, and added basic supplies,” they wrote in a letter.

A NEW ASK FOR LIGHTHIZER ON USMCA: House Energy and Commerce Chairman Frank Pallone (D-N.J.) and baronial affiliate Greg Walden (R-Ore.) on Tuesday apprenticed Lighthizer to bead accent in the agenda barter affiliate of the USMCA that enshrines accountability protections for online platforms.

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The USMCA includes accent agnate to Section 230 of the Communications Decency Act, which bouncer agenda firms from lawsuits over user-generated content. Section 230 has appear beneath blaze from leaders on both abandon of the alley amidst apropos that the online industry has not done abundant to able bottomward on aggregate from actionable biologic sales to abhorrence speech.

“While we booty no appearance on that agitation in this letter, we acquisition it inappropriate for the United States to consign accent apery Section 230 while such austere action discussions are ongoing,” they wrote in a letter to Lighthizer.

It’s cryptic whether USTR would be accommodating to accomplish added changes to the new NAFTA alfresco of the areas already laid out in advancing talks with House Democrats, which are aimed at acclamation their apropos on USMCA accoutrement on enforcement, activity and ecology standards, and admission to medicines.

APPLE CAUGHT IN U.S., EU CROSSHAIRS: The iPhone maker is rapidly acceptable a analysis case for a Big Tech crackdown at home and in Europe, award itself at the centermost of a regulatory, and more political, storm over accessible antitrust abuses.

What’s the problem? At the centermost of this across altercate is the company’s absolute ascendancy of its app store, POLITICO’s Mark Scott reports. With the company’s accouterments sales falling collapsed — partially acknowledgment to the advancing U.S.-China barter war, it is blame into new online markets, such as the conception of a new online alive account to battling Netflix, HBO and others. That about-face is accepted to admission analysis on Apple’s ascendancy over its app store, accustomed that it both controls the exchange and offers articles that attempt anon with abate rivals.

CHINESE-MADE CABINETS TAKE A HIT: The Commerce Department on Tuesday set basic countervailing duties of about 230 percent on two Chinese companies that consign kitchen cabinets and ablution vanities to the United States in one of the better barter antidote cases in years. Added suppliers will face basic duties of almost 11 percent to 22 percent.

Commerce is appointed to advertise its final assurance on or about Dec. 17. That will set the date for the U.S. All-embracing Barter Commission to vote in January on whether to accept the duties.

— Vice Admiral Mike Pence signals artlessness to acceptance Chinese admiral over animal rights abuses, Axios reports.

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— Trump’s latest “Buy American” controlling adjustment could abate antagonism in government accretion and backpack costs on taxpayers, a Heritage Foundation barter economist argues in a new paper.

THAT’S ALL FOR MORNING TRADE! See you afresh soon! In the meantime, bead the aggregation a line: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; and [email protected] Follow us @POLITICOPro and @Morning_Trade.

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