Global markets aren’t sure what to make of the trade war.
Just yesterday, news that a “phase one” deal may not happen in 2019 sent markets lower.
All as Beijing pushes for more tariff rollbacks, and as the Trump Administration makes more demands. Trump also claimed a trade deal has not been reached,” because I haven’t wanted to do it yet,” and because “I don’t think [China is] stepping up to the level that I want,” as quoted by the South China Morning Post.
Then, not even a day later, Trump said, “We have a good chance to make a deal,” as quoted by CNBC. Chinese President Xi even said Beijing wants a deal “on the basis of mutual respect and equality” and invited the U.S. for a new round of face-to-face talks in Beijing before Thanksgiving, as noted by Reuters.
Unfortunately, we’re not so sure of that “good chance.”
While Trump may believe “we have a good chance to make a deal,” he also added, “I didn’t like his word equality,” as quoted by CNBC. “This can’t be like an even deal.”
Trump Threatens to Raise Tariffs Even More
At the same time, should both sides fail to reach an agreement by December 15, the next round of U.S. tariffs on Chinese goods could take effect, says the U.S. Chamber of Commerce.
Worse, Trump even noted that if “we don’t make a deal with China, I’ll just raise the tariffs even higher,” as noted by Markets Insider. “They’d like to have a rollback. I haven’t agreed to anything,” referring to China’s claim the U.S. agreed to life some tariffs.
However, even with all of the back and forth, and uncertainty, many do believe the tariffs will be rolled back. After all, neither side wants a 15% tariff of $156 billion worth of Chinese imports to become reality.
If it did, it’d hit popular consumer electronic products ahead of the holidays.
In short, markets are confused. Stay tuned for more,