This week the markets were looking forward to an announcement from the United States and China regarding reaching a trade agreement. The two countries engaged in a trade war have both stated that the conflict is close to resolution and that a draft deal will soon be presented. However, US President Donald Trump showed signs of losing his patience with China as he stated that he will hit China with more tariffs as soon as this week unless a deal is reached.
Just on Friday Trump seemed optimistic about the negotiations, yet on Sunday he decided to threaten the country he is currently negotiating with. Because the President’s move worsened the relations between the United States and China, putting the entire negotiation process and possibility for a deal in doubt, the stock markets reacted negatively and incurred losses.
Nevertheless, China stated that they are still willing to work with the United States.Their trade negotiation team is still intending to go to the US this week to continue talks as scheduled.
