The trade conflict between the United States and China is continuing in full swing. Earlier today the Chinese Ministry of Foreign Affairs stated that they are preparing a plan to fight back against the newly implemented tariffs on Chinese exports to the United States. Note that China does not import as much US goods as the States import Chinese, so physically it is impossible for China to rely on reciprocal tariffs as punishment. However, China could change the rules for international trade and make life difficult for the countless American companies that rely on Chinese labor for the manufacturing of their goods.
After increasing the rate of tariffing $200 billion worth of Chinese goods a few weeks ago, Donald Trump hinted that even more goods might be added to the tariff list yesterday. Trump is hoping to reach a trade agreement with China soon, using the G20 summit that would take place on June 28-29 in Osaka, Japan as a deadline. Xi Jinping, the President of China, has not confirmed whether he plans to meet Donald Trump at the summit or not.
Despite all of the uncertainty of the Sino-American trade dispute, the markets are currently enjoying a small ray of hope that came after Mexico and the US signed a migration deal, averting the threat of more tariffs. Stock markets have been in the green, and even the Chinese yuan and the Australian dollar have been strengthening.
