Trump Says No Deadline For Trade War And Stocks Tumble
President Trump told the North Atlantic Treaty Organization secretary-general that he has "no deadline" for reaching a trade deal with China on Tuesday, according to The Wall Street Journal.
After the comments were released, the Dow Jones Industrial Average fell more than 400 points. Trump also threatened new tariffs on other countries and stated that he liked "the idea of waiting until after the election" to reach a deal.
Every stock in the blue-chip index fell after the release of the statement. Investors had expected the U.S. and China to reach the first phase of a trade deal with this move. The hope of no future tariffs is wavering.
“It’s extremely difficult to base any investment thesis around trade, given how challenging the protagonists are,” said Colin Reedie, co-head of global fixed income at Legal & General Investment Management. “It’s been a fairly bullish risk environment, and markets are squeezing higher toward the end of the year, so they are a little bit more vulnerable to bad news.”
President Trump stated that he has no deadline for the trade war with China and the markets dipped as a result.