Over the weekend, President Donald Trump revealed plans to postpone tariff hikes on $200 billion in Chinese goods and that the two countries are entering negotiations on other critical issues, which have helped assuage market concerns and lifted the outlook on an unimpeded global growth.
Nevertheless, we aren’t totally out of the woods yet, and investors should keep in mind that it will take some time before the U.S. and China can reach a consensus.
Analysts at RBC Capital warn of “significant gaps between what the U.S. thinks China has agreed and what China thinks the U.S. has agreed… A lot will depend on developments in the next 90 days, but given the U.S. and China are on different pages, we don’t think the optimism can last,” according to the Financial Times.
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