Donald Trump warned China about the increase in the existing tariffs. Xi Jinping, if negotiates over the tariffs put by Trump, will result in the Trade War to fuel up. On 10th May, the tariffs had already been increased from 10% to as high as 25%. This tariff is supposed to be over $200 billion Chinese goods.
Washington: The expected now comes to worse. The ongoing trade war between the two superpowers has only resulted in a deficit. More of it will lead to market chaos. This is precisely what Donald Trump intends to do if the existing tariffs are retaliated by the Chinese President, Xi Jinping.
The White House’s Financial Advisor, Larry Kudlow, predicts that the ongoing trade war will affect both the parties severely. One will be affected heavily by decreasing market value, the other is expected to suffer an employment drought. The world knows who is who.
Where will Donald Trump lead this to?
Trump has repeatedly made sure that China pays the tariffs that were changed on May 10th. The tariffs increased from 10% to as high as 25% on Chinese goods worth $200 billion.
For them to negotiate, or talk, no dates have been decided yet. Although, both are expected to meet in the G20 summit to be held in July in Osaka, Japan.
This trade war is forcing the market to go into a turmoil, of which both parties will not be benefitted.
With this, the New York Stock Exchange has also suffered a big blow. The recent effect of this was seen when Uber had a disappointing start in public. Its shares started at $42/share, only to end at as low as $41.85/share.
The market may be down to dumps, yet the war, seemingly, may not come to an end real soon. What is to come next from Trump or Xi? Still unpredictable.