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The end of trade wars is more and more distant

The end of trade wars is more and more distant

created Natalia Bojko8 May 2019

Tensions between China and the US seem to be increasing. Any steps taken in recent months that were supposed to lead to the easing of the trade war between the two countries have so far failed to produce any results. What's worse, Donald Trump (following his last comments) does not yet see the possibility of reaching an agreement with the Chinese authorities.

Be sure to read: US budget deficits rose to 691 billion USD

Duties will go up?

In a recently published news on twitter, President of the United States Donald Trump posted information about the current duties imposed on China. He wrote that since 10 months, China has been paying duties of 25% on technological goods and 20% on other goods. On Friday, tariffs on other goods are to be raised to 25%. In addition, a series of tax-free products (valued at 325 billion) will soon be subject to customs duties. This information Trump concluded after a while in the next tweet. It is difficult to have an optimistic vision of the end of a commercial dispute in the light of news published by the US President.

The contract is still in negotiations

The agreement between the United States and China has not been broken. At the moment it is difficult to talk about finding a joint exit, or going through a compromise on either side. The US has also accused the other side of the conflict of withdrawing from negotiation commitments.

The trade war between the two powers has been taking its toll on the world markets for several months. The dollar, however, is strengthening on the wave of these events not only against the Chinese yuan. A positive trend can also be observed against the main currencies, where the American currency is also gaining strength.

The fear index in the publication of tweets recorded the largest single-session strengthening since December last year. The fact that in recent weeks the theme of wars died down, volatility in the markets had the opportunity to "calm down". As a result, Trump's posts turned out to be quite a surprise for stock exchanges.

China is not letting go

China's main trade negotiator, responsible for talks with US A-Liu Shaoqi, plans to take another negotiation attempt. This week he will visit the United States, continuing trade talks.

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About the Author
Natalia Bojko
Graduate of the Faculty of Economics and Finance, University of Białystok. He has been actively trading on the currency and stock markets since 2016. It assumes that the simplest analyzes bring the best results. Supporter of swing trading. When selecting companies for the portfolio, he is guided by the idea of ​​investing in value. Since 2019, he has held the title of financial analyst. Currently, he is the co-CEO & Founder in the Czech proptrading company SpiceProp. Co-creator of the Podlasie Stock Exchange Academy project (XNUMXrd and XNUMXth edition).

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