On the other hand, China has instituted $110 billion worth of tariffs on US goods, which includes further measures that would affect US businesses that are domiciled in China. In early December 2018, U.S. President Donald Trump and Chinese president Xi Jinping agreed to cease fire on their tariff-for-tariff battle.

Related: Tariffs Will Deepen Recession by Raising Inflation

The truce reached at the G-20 Summit didn’t completely quell investor fears as markets fretted on the notion that a trade deal can only materialize after lengthy discussions between the two economic superpowers. Furthermore, slowing global growth will only offset a permanent trade deal.

“Even if the current talks result in a lasting truce with China, we expect trade to be a small drag on economic growth for most of this year,” said Andrew Hunter of Capital Economics.

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