Market Overview

Trump, Xi Agree To Resume Trade Talks, Truce A Likely Relief To Markets For Now

Share:
Trump, Xi Agree To Resume Trade Talks, Truce A Likely Relief To Markets For Now

President Donald Trump and Chinese President Xi Jinping agreed to resume trade talks, and the United States will back down for now from a threat to impose more tariffs, easing, at least temporarily, the high-stakes multibillion dollar trade war that has made investors around the world nervous.

Stocks are likely to see at least a short-term rally after the Trump’s announcement of progress amid relief that further escalation of the trade war has been avoided for now.

"We're going to work with China where we left off,” Trump said after the meeting with Xi at the G-20 summit in Osaka, Japan.

Several observers noted, though, that markets may remain somewhat cautious because of unpredictable nature of the Trump Administration and the stop-and-start history of trade talks between the two countries.

Huawei

Trump also said the U.S. will resume allowing American companies to sell products to Chinese technology company Huawei, a central firm in U.S. complaints about China. Trump said, however, that only sales to Huawei in which national security won’t be compromised will be allowed.

Trump said American companies had complained about being barred from selling to Huawei under the blacklist and that he wanted to help them.

Chinese commercial practices are one of the major disagreements between the two countries – Washington alleges Chinese firms steal technology from American companies doing business there, and coerce foreign companies into divulging trade secrets. China denies the allegations.

What Was Agreed

The U.S. will postpone a threat to put new tariffs on another $300 billion in Chinese goods, “for the time being,” Trump said.

China agreed to restart purchases of American food and agricultural products. Trump said it was a “tremendous amount” of goods that would soon start flowing to China as a result of the talks.

Both leaders expressed optimism about the resuming negotiations and the nature of the two countries’ relationship.

"One basic fact remains unchanged: China and the United States both benefit from cooperation and lose in confrontation,” Xi said.

Related Links:

U.S. Agricultural Exporters Caught In Middle Of Trade War With China

Trump Talks China, Mexico And Big Tech In CNBC Interview

President Donald J. Trump and President Xi Jinping | July 8, 2017 (Official White House Photo by Shealah Craighead)

Posted-In: Government News Regulations Futures Events Global Top Stories Markets Best of Benzinga

 

Related Articles (FXI + SPY)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Barron's Picks And Pans: AbbVie, Crocs, RealReal, Roku And More

ONE Cannabis Appoints Frank Knuettel As CFO