Trump predicts ‘fair deal’ deal with China
Trump predicts a deal with China
Donald Trump’s aggressive stance and mixed signals in the trade war with China are negatively affecting American stocks, which are heavily dependent on the world’s second largest economy..
US stocks rose more than 1% in response to predictions Trump on the conclusion trade deal after the words of the Vice Premier of China Liu He about the settlement of the dispute through calm negotiations.
Friday index S&P 500 Falls 2.6% Amid Trump Announces $ 550 Billion Additional Duty On Certain Chinese Goods. Trump also demanded that American companies look for alternatives to the Chinese market and partners from the Middle Kingdom. However, later, he cooled his ardor.
Escalating uncertainty over Trump’s intentions over the trade conflict adds tension to Wall Street, where investors are concerned that tariffs could plunge the U.S. economy into recession.
«This trade war has more plot twists than Quentin Tarantino’s film», – by OANDA Senior Market Analyst Edward Moya. He added that higher and wider tariffs will affect American consumers and potentially slow down the US economy..
The protracted trade war and China’s slowing economic expansion have hurt several other US industrial and material companies that have relied on China in recent years. The Philadelphia semiconductor index lost almost 6% in August. Detroit automakers General Motors and Ford Motors cut their annual earnings forecasts on rising tariffs. Caterpillar Inc will increase its material costs to $ 200 million in the second half of 2019.