After trade talks with China broke down last December, Trump has rekindled hopes of a truce. Global markets rejoice, Wall Street hits a record high.
“I think we have a good chance of making a deal,” Trump said as he restarted talks with China for a trade deal. Trump feels that the Chinese have had the upper hand for a long time, which is why it is time for a trade deal that tilts in the United States’ favour.
- Before he took office in 2016, Trump took issue with China’s trading practices.
- In 2017, the US of A started investigating into China’s trading policies.
- Beijing responded to billions of dollars worth of tariffs on Chinese products by reciprocating and retaliating in kind.
- These tariffs ( of up to 25%) imposed by the US, were done in three rounds & on more than $250bn worth of goods ranging from flat-screen televisions to handbags and railway equipment.
- What ensued was a range of tit-for-tat tariffs and all hopes of a trade deal faded up until the recent G20 Summit in Osaka, Japan.
Showing signs of progress, US shares shot up
The S&P 500 index of US stocks closed at 2,964.33, overturning the record high on 21 June. Tech stocks led the rise as optimism about the negotiations gave the rise a helping hand.