The cooling down of tensions between the world’s two largest economies came as a relief to investors across the globe.
The world’s two biggest economies are standing down. For now. The United States is officially dropping its headline-grabbing threats of imposing huge tariffs on Chinese products as it focuses on the ongoing negotiations regarding how to best close the trade deficit with China. “We’re putting the trade war on hold,” Treasury Secretary Steve Mnuchin said on Fox News Sunday .
The words came as “a relief to investors, who had feared the world’s two biggest economies were on the brink of an all-out trade conflict,” notes Bloomberg . “The International Monetary Fund has warned that a global trade war would undermine the broadest global upswing in years.”
Even though Larry Kudlow, Trump’s top economic adviser, said tariffs could still become a reality, it seems clear relations have cooled down. The announcement came after two days of talks between the two countries in Washington that has reportedly led to commitments from Beijing to buy more American products and make it easier for U.
