The United States president, Donald Trump is now more anxious to come to a settlement with the other economic giant, China soon.
The reason behind this is to boost the financial markets that recently collapsed due to fears over the trade war. Now on Wednesday, discussions between the Chinese and the U.S. executives were finished. According to the Chinese administration, a positive outcome from these discussions will truly be beneficial for the economy in general. The discussions are going to continue for another day. This fact supported evidence that the two countries are really starting to advance toward a resolution of the matter.
In U.S, Europe, and Asia, futures increased, on a new expectation for a resolution on the confrontation between the world’s two biggest economies.
The S&P 500 Index dropped more than 7% percent since the Chinese president and the US president placed a 3-month truce in December. So now the US administration is trying to speed up the negotiations to boost the financial markets. China’s yuan advanced to the highest level in more than 30 days. Trump tweeted on Tuesday “Talks with China are going very well!”
According to experts, Trump’s eagerness to make a deal with China is motivated by his wish for markets to recover. He said publicly that he’s anxious to strike a deal that will benefit the US and China. Now the US and China should until 1/3/19 come to an agreement before U.S. tariffs on some $200B in Chinese products are going increase to 25% from the current 10%.