With trade dispute spiraling out of control, measures are being taken to bring the trade war to an end or under control.
With March 1 as a deadline, the dispute has to be resolved by both countries. Else, tariffs will rise from 10 percent to 25 percent on the $200 billion imports from China. This will have repercussions on both countries.
Mr. Mnuchin and Mr. Lighthizer are playing prominent positions in the talks. Mr. Mnuchin has offered to remove tariffs during discussions on Jan 30. However, Mr. Lighthizer comments that China is not following agreements made in the past and cannot be trusted for the future too. But Mr. Lighthizer shows some signs of relenting on his tough stance.
Though talks have not been finalized, the situation looks slightly on a brighter side. President Trump’s bullish remarks show some signs towards striking an agreement.
In China, officials have publicly made announcements of progress being made on both sides that may lead to an agreement. The economy continues to decline fast, especially in the manufacturing sector.
In the U.S., the markets continue to be volatile and saw a sharp decline in December. Farmers have been affected by the huge tariffs imposed by China on American farm products.
Apple, a large tech giant has pointed fingers to the trade conflict for its poor sales and earnings less than forecasts.
Last week, there was a three-day discussion in Beijing in which China has agreed to import more goods from the U.S. in farm and energy products.
However, Wall Street celebrated the announcement that the U.S. may lift tariffs on China, on Thursday. However, the rally stemmed down when it was found that no concrete decisions were made and gave up its early gains.
The market is looking forward to good news and an end to the trade war that is affecting the entire world.