The ongoing trade disputes between America and China are now being resolved. There is talk that Donald Trump and Xi Jinping may finalize a trade agreement by the end of this month to reduce the growing trade tension between the two countries. After that, the tariff dispute, soybean export and rare earth minerals restrictions may be removed. A deal can also be done quickly between India and the US. If this deal is done, there can be an attractive boom in the stock market.
Top trade officials from both the US and China met in Kuala Lumpur, Malaysia on Sunday. In which issues ranging from fentanyl and shipping charges to soybean export and rare earth minerals restrictions were discussed and positive signals were received.
US Treasury Secretary Scott Besant said that the risk of Trump’s proposed 100 percent tariff on Chinese products has been completely removed. In return, China is expected to resume large-scale purchases of soybeans and suspend export restrictions on rare earth minerals for at least a year. US Trade Representative Jamieson Greer said, “We are moving quickly in negotiations with China.” Trump also expressed his expectation at the ASEAN summit that we are moving towards a settlement with China.
Signs of a deal have been received after a long-running trade war. Recently, China took a tough stance on rare earth minerals exports and imposed restrictions. Trump then imposed an additional 100 percent tariff. Which was to take effect from November. But now the negotiations between the two countries indicate the end of the trade war. If a settlement is reached between the two at the Trump-Xi summit on Thursday, the dispute over TikTok sales and the port charges issues will be resolved. Both issues are at the heart of the trade war.
Chinese Ambassador Li Chenggang confirmed that an agreement has been reached on the fentanyl ban. On this issue, America has indicated that it will withdraw the tariffs. After this news, the stock market has received a good reaction. Currencies like the Australian and New Zealand dollars have risen.
