Following Sunday’s talk between President Donald Trump and Chinese officials, the trade war between the two countries has seemingly reached a turning point after President Trump explored the possibility of a positive future of global economic growth with China.
The stock market saw a sharp fall on Friday, Aug. 23, after China’s decision to employ retaliatory tariffs on U.S. goods amounting to $75 billion. The stock market fall happened when Trump responded with his own increase on $250 billion in imports to 30% from 25%, on Oct. 1.
On Friday, President Trump commented on Twitter that China may potentially be a threat to the American taxpayer.
“For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight,” the president tweeted. “Sadly, past administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer. As President, I can no longer allow this to happen!”
Amid the trade war tensions, President Trump noted that he has “second thoughts about everything,” and that America is “getting along well right now with China.”
Sunday morning, the president said he has “no plans right now” to go through a national emergency that would result in a bar between American and Chinese businesses.
President Trump’s sustained optimism has relieved stock market jitters since its sharp fall on Friday.
“We are probably in a much better position now than any time in the negotiations,” said President Trump in his meeting on Monday with German Chancellor Angela Merkel.
Earlier, Liu He, Chinese vice premier noted that China was against further escalation of the trade war and sought “calm” negotiations.
Stock market futures leaped since President Trump’s suggestion of a positive outcome for the Sino-U.S. market, with Dow jumping upward of 260 points since the president’s comments.
“They want to make a deal,” the president told reporters on Monday at a meeting with Egyptian President Abdel-Fatteh el-Sissi at the Group of Seven summit. “That’s a great thing,” he said.
Larry Kudlow, director of the National Economic Council serving under President Trump said on Sunday afternoon that he expects a call from Chinese officials and their visit to Washington is still anticipated.
“You’ve got both sides playing their game, we get that,” Kudlow said to reporters. “As long as they are talking, I’m good.”