China may have just blinked.
In fact, just days before new tariffs, they hinted they would not retaliate.
“We firmly reject an escalation of the trade war, and are willing to negotiate and collaborate in order to solve this problem with calm attitude,” Gao Feng, spokesman for China’s Ministry of Commerce said, as quoted by CNBC.
The news comes just days after President Trump threatened to raise tariffs on $250 billion worth of Chinese goods from 25% to 30% in response to China’s threat.
“China has plenty of means for counter measures, but under current situation, the question that should be discussed right now is about removing the U.S.′ new tariffs on $550 billion Chinese goods to prevent escalation of the trade war,” Gao said, as also quoted by CNBC.
At the moment, we’re waiting on President Trump’s response.
If he also says he’s backing off raising tariffs by next week, markets could run significantly higher. At the moment, Dow futures are up 270. S&P 500 futures are up 25, as NASDAQ futures tack on another 83 points.
Stay tuned for more on this developing story.