Donald Trump Demands 'REAL DEAL' with China Despite Shaken Stock Market

Gladys Abbott
December 7, 2018

And that person is President Trump. -China trade cease-fire, contributing to a broad stock market plunge and intensifying fears of a global economic slowdown.

The announcement on Wednesday followed a period of relative quiet from Beijing after Chinese President Xi Jinping and his U.S. counterpart, Donald Trump, reached a temporary truce in the trade war between the world's two largest economies over the weekend.

The Dow Jones Industrial Average shed 3.1% while the tech-dominated Nasdaq was nearly 4% down by the close.

"That says nothing was actually agreed upon".

The US trade deficit with China was Dollars 335 billion a year ago and many manufacturers rely on inputs from the world's number two economy, so eliminating the deficit would be an extraordinary goal.

John Williams, president of the Federal Reserve Bank of NY, also unnerved investors by telling reporters Tuesday that he supports further Fed rate hikes.

Trump and Xi also agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, according to the White House statement. China's crude oil imports from the US had ground to a halt. He said the "implicit potential threat" of new tariffs had been reduced after the meeting.

The Ministry of Commerce of China announced that the ultimate goal of the Chinese-American trade negotiations is the abolition of all fees.

For meetings such as the Trump-Xi dinner, the initial official news report is typically drafted by the foreign ministry and approved by the General Office of the ruling Communist Party's Central Committee, she said.

"I think that if you put the two press releases together, you can see what basically happened", Cui Tiankai told Reuters in Washington on Monday after returning from Buenos Aires, where he had joined Xi's delegation.

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Trump again claimed Tuesday that more tariffs on China would actually help the U.S. He contended that he has made China "pay for the privilege" of raiding "the great wealth of our Nation".

By Tuesday, the optimism had completely faded as Trump once again called out China for its trade practices.

"We are either going to have a REAL DEAL with China, or no deal at all - at which point we will be charging major Tariffs against Chinese product being shipped into the United States", Trump wrote on Twitter. Ultimately, I believe, we will be making a deal - either now or into the future.

"We are confident in implementation", it said, calling the latest bilateral talks "very successful".

If the move is indeed true, it would be a positive one as the automotive industry has suffered the consequences of the growing U.S. China has imposed duties on about $110 billion in USA products.

"The actual amount of concrete progress made at this meeting appears to have been quite limited", Alec Phillips and other economists at Goldman Sachs wrote in a research note.

The US and China paused a trade war after several months, agreeing to halt new tariffs for 90 days.

Mr Trump has said China is supposed to start buying agricultural products immediately and cut its 40 per cent tariffs on United States auto imports.

Chief economic adviser Larry Kudlow acknowledged those challenges in remarks Tuesday morning.

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