In the G-20 Summit held in Argentina, the two presidents agreed on a 90day trade armistice that had put their tariff war on hold for months until the last week. Stockholders and shareowners would soon get to view the G-20 summit held in Japan, the coming month.
The President of U.S., Donald Trump and the President of China, Xi Jinping aim to meet during the escalating trade war between the U.S. and China. The probability of manifesting a deal at this meeting “is about 50-50,” stated the former U.S. ambassador to China. “So far, President Donald Trump has been hot and cold- he says things are great one day, and then blames China the other day, so that’s very hard to tell,” as told by Max Baucus, the former U.S. ambassador to China on Wednesday.
On the previous Friday, the U.S. more than doubled tariffs on $200 billion of Chinese products amongst the ongoing negotiations. This prompts China to retaliate with its own set of tariffs. Beijing announced on Monday that more than 5,000 American products could see duties rise of about 25% from June 1st.
“This very public approach has put both countries in a very difficult position because it’s very hard to back down now,” as stated by Max Baucus. He claimed that the upcoming U.S. presidential election in 2020 will also be a factor in the ongoing trade negotiations.
Baucus who is also a former U.S. Democratic senator from Montana said, “I frankly wonder, it’s very possible that President Trump will strike a deal before 2020 That will especially happen if the stock market is going south because he likes a solid stock.” But Trump is caught up “in a bit of a box” as “he doesn’t want to appear weak,” stated Baucus.