Crystal ball hazy on what Trump will do about the extra 15% in levies

THIS weekend marks the Dec 15 deadline for the US to impose new tariffs on China. The big question is whether US President Donald Trump will, true to his threat, slap an extra 15 per cent in levies on nearly US$160 billion of Chinese imports, or will he roll them back.

Pundits say it is a close call and no one dares predict whether he could indeed become the Grinch who stole Christmas by going full steam ahead with the tariffs. If anything, the US equity markets appear to be pricing in a tariff delay.

Some positive news has fuelled hopes that the trade-warring parties may be able to pull off a "Phase One" deal. On Monday, China's deputy commerce minister remarked that Beijing wants "satisfactory results as soon as possible" on the trade talks.