Global Equities Have Already Experienced Significant Decline Amid US-China Trade Disagreements: What’s Next?
Global stock markets were largely spoiled by Donald Trump's plans for imported tariffs on imported metals from the beginning of this month. Fears that Trump may launch a global trade conflict when he announced plans to introduce tariffs on imported steel and aluminum, risking retaliation from major trading partners such as China, Europe and neighboring Canada, caused a significant drop in US stocks. Concerns over the trade war that could harm transnational corporations in the US have caused the S&P 500 to decline by almost 4% since the end of February.
At the end of last week, equity markets experienced another major decline after Trump moved to introduce tariffs on some Chinese imports of up to $60 billion, and China announced its intention to reimburse fees of up to $3 billion.
But still, the readiness of China and the US to negotiate caused a revival in the markets earlier this week, although investors are still concerned about the trade war between the two largest economies of the world. The Trump administration has demanded that China immediately cut its $375 billion trade surplus with the United States by $100 billion, which some consider to be one of the first tactical operations in long negotiations.