The stock markets jumped on Monday, when the United States and China promised to cancel the identification of an emerging commercial war and expand the scope of the customs tariff that Threaten To the largest economy in the world.
The Hang Singh Index in Hong Kong closed by 3 % higher, with news an hour before the market closed. The index has now regained its losses since US President Donald Trump The “mutual definitions” announced on April 2. S&P 500 Futures 2.75 % increases, as of 4:45 am Each time.
On Monday, the United States announced this You will retract most of the definitions It was imposed on China. During the next three months, fees will be imposed on Chinese goods by 30 %: a 20 % tariff linked to the alleged fentanel smuggling, and 10 % basic tariffs on all American imports. The revenge tariff imposed on April 8 and 9, which increased the definitions to 145 %.
This means that if the stop is not extended, after 90 days, the definitions of Chinese goods will rise to 54 %.
On the other hand, China will reduce the definitions of American goods to 10 %. Beijing will also Stop From her uncontrolled revenge.
“Total reset”
Even before revealing the temporary suspension, Asian investors were optimistic that good news was on the way. US and Chinese officials in Geneva, Switzerland, met during the weekend, the first since Trump first imposed a tariff on China in February.
On Sunday, US Treasury Secretary Scott Payet announced that the two countries had made “”Significant progress“In negotiations, Trump described, on social media, talks as”Reset the group“In relationships.
At a separate press conference, the Chinese Deputy Prime Minister said by Living said that the talks were “frank, in -depth and constructive,” according to a copy of Pichenology, A news message focuses on China.
The two sides also agreed to create a “new commercial consulting mechanism”.
This optimism helped raise the Asian markets on Monday. The Japanese Nikki 225 increased by 0.4 %, South Korea increased by 1.2 %, and Taiwan Taix increased by 1 %. (All of them are closed to the American and Chinese advertisement.)
Cancel the manufacture of trade war
A tariff on Monday is the latest, and most importantly, Trump’s trade war fell with China. The two sides quietly gave great exemptions from the customs tariffs of the main goods, such as Consumer electronics (On the part of the United States) and Semiconductor (On the part of China).
However, the American economy had already begun to feel the effects of definitions. Ports operators predicted A sharp decrease in charging volume, while American companies complained Delayed shipments.
China has also faced the possibility of significant losses in the loss of access to the American market. In late April, Goldman Sachs suggested that you reach this 16 million jobs in China They were exposed to the United States market.
Fear of real economic damage, finally, has prompted both sides to start talking.
“The consensus of both delegations is that any of the two parties does not want to separate it.” He said at a press conference On Monday, after announcing the definitions that stop temporarily.
This story was originally shown on Fortune.com
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