Beijing is willing to hold talks with the United States to settle trade disputes in what observers perceived to be an attempt to avoid a damaging trade war. The U.S. floated plans to enact tariffs, investment restrictions and other measures aimed at addressing the $375 billion merchandise trade deficit with China, which destabilized global markets last month.
Related: International ETFs Are Finally Turning Heads
“Yet recent U.S. negotiating tactics have followed a consistent pattern: headline announcements spooking markets, followed by compromises and narrow implementation,” said BlackRock. “Most major U.S. trading partners are now exempt from what were initially global steel and aluminium tariffs. U.S. President Donald Trump’s tariffs on Chinese goods triggered another bout of market volatility. Yet the order contained no immediate action and left the door open for talks.”
For more information on the international markets, visit our global ETFs category.