Trump Signals Trade Deal With China Could Be Delayed Until After 2020 Election
President Donald Trump suggested that he may delay a trade deal with China until after the 2020 election, sending the Dow Jones Industrial Average down 450 points, according to CNBC.
The White House confirmed that it would be moving ahead with the scheduled Dec. 15 tariffs on Chinese goods, subsequently causing markets to hit the lows of their day.
"In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right...In some ways I think it is better to wait until after the election, if you want to know the truth,” Trump told reporters on Tuesday.
Washington and Beijing have introduced tariffs on billions of dollars’ worth of imports over the last year as trade disagreement escalated.
“Today’s session will hinge on the market’s interpretation of Trump’s overnight comments which concluded he has no deadline for a trade deal with China,” Ian Lyngen, head of U.S. rate strategy at BMO Capital Markets, wrote.
“There are several potential reads of these remarks; the first of which would simply be to take them at face value and assume the trade war will be a semi-permanent fact of global commerce throughout next year,” Lyngen continued. “There is also the very real probability he’s simply raising the stakes as a negotiating tactic.”