The secretary of the US Treasury, Scott Besent, commented that the tariff confrontation with China is unsustainable and expects a unworthy of the situation.
Besent said that although the negotiations had not begun, an agreement is possible, according to people who attended a private event by JP Morgan Chase & Co. in Washington.
Reaction of financial markets to Besent’s comments
The Djia has risen more than 1,000 points to 39,200 as the appetite for the risk improved. Gold prices fell below $ 3,400, lowering more than $ 1%, and the US dollar earned more than 0.39%, according to the DXY, which is at 98.70.
In the currency space, the EUR/USD fell below 1,1450, lowering 0.4% and the GBP/USD remains below 1,3360, lowering 0.15%.
Daily Gold Graph
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
