Daily Management Review

The Trade War With China Is A 'Little Squabble', Says Trump


The Trade War With China Is A 'Little Squabble', Says Trump
The trade war between the United States and China was described as "a little squabble" by the US president President Donald Trump on Tuesday while also stressing the there was no collapse of the negotiations on trade between the two countries.
The global markets however remained concerned about the further escalation of the trade war between the two countries.
Trump expressed optimism about reaching a trade deal with Beijing in a much softened tone in a series of remarks.
"We're having a little squabble with China because we've been treated very unfairly for many, many decades," Trump told reporters while referring to allegations made by the Trump administration about intellectual property and subsidy policies followed by China.
Last week, the US imposed additional tariffs on Chinese imports worth about $200 billion which created uncertainty about the future of the trade negotiations. China replied with tit-for-tat tariffs of its own on $60 billion of US imports into the country.
"We have a dialogue going. It will always continue," said the US President. Trump has already announced that he would be meeting his Chinese counterpart Xi Jinping late next month at a Group of 20 summit in Japan.
The dialogues with china were described to be "very good" by Trump and he also applauded his "extraordinary" relationship with Xi.
In a tweet some time back, Trump had mentioned that a trade deal with China would be made yb the US when the "time is right" and had added that it would happen "much faster" than what was being believed.
There was a continuation of the rebound in tech stocks at the Wall Street which led the way for a greater rebound even though all of the major indexes ended the day well below their session highs.
"It's a nice bounce-back certainly after yesterday for sure," said Gary Bradshaw, portfolio manager of Hodges Capital Management in Dallas. "It seems like President Trump has been more jovial and more upbeat in making comments that hopefully will get this trade situation squared away. I think that's got investors buying the dip." There was a 1.01 per cent rise in the pan-European STOXX 600 index.
The understanding between China and the US to continue "pursuing relevant discussions" was announced earlier on Tuesday by the Chinese Foreign Ministry spokesman Geng Shuang during a daily news briefing in Beijing. "As for how they are pursued, I think that hinges upon further consultations between the two sides," he said.
According to reports quoting a US Treasury spokesman, plan for a trade meeting in China at some point is being made by US Treasury Secretary Steven Mnuchin.
China's most recent retaliatory tariffs have targeted US agricultural products and the US farmers which is one of the most important key political constituency for trump who are reportedly getting more frustrated by the two sides not being able to find a solution to end the trade war.
An appeal to China to buy more American farm products was made earlier on Tuesday by Trump.