Good Day Coming For Global Stock Market; Us And China Ready To End The Nine-Month Long Trade War.

Global stock market is running low with the risk of financial market crash since US-Shino trade war started. For some of the nation, this trade war occurred to be a boom for their economy but one thing is for sure, both the giant economies are hit severely. European Network for Economic and Fiscal stated this trade conflict to be the biggest in the world economy where it cost the trade of more than $50 billon. Regarding the US-Shino trade war, Leon Goldfeld, MD of multi-asset solution at JPMorgan stated- “Being toward the end of the economic cycle, we don’t know when the next recession will be but it is much likely going to be sooner rather than later.” But it seems this major treat is going to end soon.

What will make a full stop to US-China trade war?

Major statement regarding this mighty problem occurred when US president Donald Trump on this Friday said that the United States and China are close to entering into a trade agreement and something very ‘monumental’ could be announced in next four weeks. He also mentioned about a summit meeting with Chinese President Xi Jinping which will only happen after the deal is finalised with China. Top US and Chinese officials are also meeting to reach an agreement after the world’s two biggest economies entered into trade war which resulted into imposing trade tariffs of about $360 billion in two-way trade.

Why trade war started between US and China?

Since the time Donald Trump took the oath as the President of United States, he started complaining against China’s trade policies against US. In his protest, President Donald Trump launched an investigation team for investigating Chinese Trade Policies and imposed a tariffs of $53 billion upon Chinese goods, in reply Chinese government also imposed tariffs of $50 billion upon US goods. Later on to resolve the issue both the countries agreed to halt new trade tariffs for 90 days and allowed themselves to get solution through talks but things did not worked in their favour much. To show their supremacy US again hit China by imposing a tariff of $200 billion while China hit back US by imposing $60 billion. Since then relation between both the countries are running harsh.