President Trump backs down on Higher Tariffs on Chinese Goods
President Trump backed down on his tariffs increase on Chinese goods as the stock markets plunged. As the treasury yields turned negative, stock markets witnessed strong selling. Investors panicked and this led President Trump to have a conversation with banking leaders on the issue.
Sensing the situation, Trump went on Twitter to calm investors by saying that he will be soon talking to Chinese Premier Xi Jinping. China also needs a deal with the United States on tariffs issue but the Asian powerhouse isn’t showing any signs of desperation.
Chinese leadership has been waiting for Trump to see economic troubles for his decisions of higher tariffs. China suffered economic issues but the leadership has always put forward a strong face. Chinese government has always suggested that it can endure more pain but won’t succumb to President Trump’s demands.
Chinese economy has slowed down and stock markets have suffered. But, the leadership in China is not yet ready to show any kind of desperation. President Trump has tough task of keeping investors calm just before he starts with his re-election campaign.