Will disputes between the US and China cause market turbulence?

02 / 06 / 2020
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Trade negotiations between the US and China lasted more than two years. During that time, customs duties were imposed on Chinese goods, with an annual import value to the United States of $ 370 billion. In recent weeks, there have been almost daily indications from the White House that Trump could cancel the deal. The repeal of the agreement would re-launch the previous US-China trade war, which lasted almost two years. This is at a time when the US unemployment rate is the worst since the economic crisis of the 1930s.

US President Donald Trump does not have much choice and will have to stick to the first phase of a trade agreement with China for the time being, despite a new security law for Hong Kong and dwindling hopes that China will meet a set volume of US purchases. On Friday, Trump announced that the United States would begin lifting some trade and travel privileges for Hong Kong, but did not mention the trade agreement.

According to analysts, leaving the agreement five months before the presidential election would also not give Trump the necessary political advantage in undecided states with a high representation of the manufacturing industry.

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