The trade negotiations between the United States and China are definitely entering a new round. Thursday, Chinese Deputy Prime Minister Lui He is coming to Washington “to close a deal,” Donald Trump has announced via Twitter.
In the meantime, the United States will introduce the new import tariffs on Chinese products on Friday. It is a rate of 25% on products worth $ 200 billion. This is introduced because of “previous promises to which Beijing is now coming back”. Trump had already announced that increase on Sunday. Analysts assume that with successful trade talks, rates will also be abolished quickly.
According to Trump, the Chinese were slowing down because they were hoping for a Democratic president after the November 2020 elections. The current president argues with someone like Joe Biden. “But that’s not going to happen!”
The announcement seems to be good on the US stock markets. The futures on the Dow Jones index are still in the red, but less deep than earlier today. The AEX is unchanged just after three, and jumped up after Trumps tweet.
The stock markets were shocked after Trumps announced new import tariffs on Sunday: € 1200 billion in market value was lost in half a day on Monday. The stock exchanges also had trading shivers on Tuesday.