Beijing resonated Washington’s call to maintain the agreement. Vice premiere that lefeng Allegedly said Both countries should respect business commitments and maintain dialogue to ensure progress towards long -term stability.
Economists question the reliability of the deal
The global markets initially welcomed the diplomatic tone and the possibility of constant discussion between the two leaders. However, economists’ reactions for Trump’s comments were less optimistic.
The Chief Economist and Global Strategist Peter Shif commented in the Euro Pacific Asset Management:
“Regarding its deal with China, Trump is claiming that ‘we are getting 55 percent tariffs, China is getting 10 percent.” But ‘we are meeting’ actually means ‘we are paying.’ This tax growth means that Chinese goods will be 55% more expensive for Americans that buy them. ,
More expensive goods than China and cheap goods from the US can tilt the supply-balance in favor of American goods. However, the reality is that tariffs on Chinese goods can higher to US inflation, fed rate cut bets and potentially affect the American economy.
Stanberry Research Editor Brian Tikangko highlighted the unilateral nature of the agreement, stating:
“It makes sense to come out of the US a little.
TycangCo also paid attention to Beijing’s silent response, suggesting that the agreement remains early and is now likely to negotiate.
Trade deal enthusiasts fade as market
On Thursday, June 12, Hong Kong and mainland China markets failed to expand the profit from the previous day. The CSI 300 and Shanghai Composite fell into 0.37% and 0.21% in early trading, while the Hang Seng index fell 0.65%.
Despite the agreement with two days of conversation, the lack of substance left investors in Limbo. The US-China business talks appear to be prescribed to continue the market spirit.
