This week we got some more details about the trade negotiations between the United States and China and things are looking good for the global markets. According to the latest reports, China has agreed to implement massive restructuring policies regarding its economy and the way they conduct business with international companies, a point that was arguably the most important issue to the United States due to intellectual property disputes. Moreover, China has agreed to roll back some of its older tariffs on American goods and the United States will also be cancelling the tariffs imposed in 2018 on Chinese imports totalling $200 billion.
If the agreement is signed into effect in the shape and form news outlets have been informed about, then this would essentially put an end to Trump’s trade war with China. Last year his agreements with Canada and Mexico also resolved another chapter of Trump’s trade war saga, so all of this has had a positive impact on the financial markets. We have yet to learn where Trump stands on tariffs on the EU, but unless he imposes any, we are likely to see an improvement there too, since the bloc was affected by China’s problems with the US last year.
As things stand currently, unless there are any major upsets, we expect the trade agreement between the United States and China to be signed on March 27.
