Alas, there may be light at the end of the tunnel! The US economy, importers and consumers have been plagued by concerns of impending tariffs and the possibility for additional tariffs to be announced. The most pressing is a looming 25% tariff scheduled to apply on January 1, 2019. The topic of trade wars between The United States and China have been highly publicized and have left experts and critics puzzled with what the end result will be.
This week marks the first sign of good news and signals a potentially positive outcome to the trade tariffs. President Trump and Chinese President Xi Jinping held a dialogue, which resulted in positive comments afterward. In a tweet, President Trump stated he had a “long and very good conversation” with China President Xi, “with a heavy emphasis on trade.” This is the first news of positive discussions and also the first ‘top-level’ discussion between the two presidents. Earlier discussions involving the US Trade Representative and delegates from China have failed.
Nothing has been finalized, but the President’s positivity is a very good sign. The leaders are scheduled to meet later this month at the G-20 summit in Argentina. Others close to the President are managing expectations cautioning that nothing has been set in stone.
The US Stock Market suffered a turbulent October as US Companies publicized the potential impacts to profits and earnings should the trade war continue to escalate. The market surged yesterday with the tweets from President Trump.
We will continue to follow this topic as it develops.