The US-China trade conflict has been a controversial moment in Trump’s presidency. However, reports and recent talks are stating that this conflict might finally becoming to an end.
While the US is almost always engaged with trade disputes with various countries, the Washington Post attributes the start of the trade war to July 8, 2018. This conflict stems from many causes, such as unethical labor laws in China and desire to improve American factories.
President Donald Trump also cites the issue of identity theft in terms of technology, and said that he wants to stop “unfair transfers of American technology and intellectual property to China.” As a result, both governments have implemented steep tariffs on goods such as steel, aluminum, and various agricultural goods.
However, recent updates to this trade war suggest a potential conflict resolution within the next couple months. In the beginning of December, Trump and Chinese President Xi Jinping agreed to withhold further tariffs on each other’s countries for 90 days in order to improve the chances of negotiations and ease tensions. Because of this, investor confidence in the stock market has been fluctuating, leading to the Dow rising and falling.
However, according to CNBC, chief market strategist at TD Ameritrade JJ Kinahan said “It seems like things are headed in the right direction.” Furthermore, Reuters reported that on December 12, Chinese state-owned companies had bought at least 500,000 tons of US soybeans, which is the first major U.S. soybean purchase since the start of the trade war.
China’s decision to not impose more tariffs and buy American products signifies the potential of a trade agreement, which economists are hoping can be reached by March 1.
Article by MoCo Student staff writer Shevani Tewari of Richard Montgomery High School