The President of U.S. Donald Trump will continue the trade with China but is not going to declare any deal right now.
These two greatest economic countries have been locked under a disagreement in trade with tit for tat import tariffs that have shaken the global financial markets and also have raised concerns about the economic growth.
He also called the September round of trade talks into question, stimulating concerns over the financial markets that the two-sided dispute is not ending any time soon.
Mr. President also propagated confusions by saying: his Country would not do business with China, only to have him explain afterward that he was referring to US government purchases of Huawei equipment, not requests for sales by US companies, which are still being assessed.
Trump commented on this issue saying: “We are not doing any trade with China for now. China wants to do the trade but I am not ready to forget the abuse of twenty-five years. We’ll see what happens next.”
The ties between these countries have gotten worse, intensely after Trump’s announcement on 1st August that he would impose a 10% tariff on the final 300$ billion worth of Chinese imports on 1st September. This action has prompt China to stop the purchase of agricultural products from the US.
The United States has also called China a currency manipulator after it allowed the Yuan to slip below 7 to the dollar.
The stocks of the US have fallen on Friday, covering a week of trading that saw huge swings and high volume. All three indexes were down more than 1% in early trading and rebounded later in the session. The Dow Jones Industrial Average fell 90.75 points, or 0.34%, to 26,287.44 and the S&P 500 lost 19.44 points, or 0.66%, to 2,918.65.
Elwin de Groot, Rabobank’s head of macro strategy said: “It has been a very tough week. At first, we thought it’s just another issue that would get resolved but now as we see it, we think it’s not going to get resolved any time soon”.
The International Monetary Fund on Friday said that China’s Yuan valuation was largely in line with economic fundamentals, but an IMF official said that the fund was encouraging China to pursue a more flexible exchange rate with less intervention.