Are China & the US showing willingness to negotiate the easing of tariffs? | The Business | ABC NEWS
Investors on Wall Street are looking for signs of easing tensions in America’s trade war with China.
Beijing has denied Donald Trump’s statement that negotiations over tariffs are taking place, and the Treasury Secretary Scott Bessent says he doesn’t know if Mr Trump has spoken to President Xi, but he says the two countries will need to find a way forward.
There are reports China has exempted some pharmaceuticals from its steep tariffs on US imports, and is considering exempting other products too.
Chief investment officer at UBS Global Wealth Management, Andrew McAuley says the reports of tariff exemptions are an indication of what is likely to occur for the rest of the year. He says Trump may gradually walk back on tariffs cutting deals to ease them back.
The S&P 500 jumped nearly 5 per cent last week, Mr McAuley says that was likely a relief rally. He says Trump’s tariffs were worse than the worst case scenario that UBS had predicted, and now there’s relief that we may have seen the peak. He says Trump potentially took a ‘shock and awe’ approach with tariffs before scaling back.
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