On Tuesday, U.S. Treasury Secretary hinted at a possible de-escalation in the trade war with China, noting that the current tariff situation is unsustainable. This statement comes after a period of increased trade tensions between the two economic superpowers.
During a speech, the Secretary mentioned that formal talks between the U.S. and China are yet to begin. Previously, the U.S. had imposed significant import taxes on China, which led to retaliatory tariffs from China on U.S. goods. These tariffs have contributed to stock market volatility and concerns about economic growth and inflation.
Following reports of these remarks, the S&P 500 index saw a notable increase. The President acknowledged the stock market's positive movement but did not explicitly confirm the Treasury Secretary's assessment of the trade situation with China. He suggested a willingness to be accommodating towards China and hinted at a potential decrease in the final tariff rate.
The situation remains dynamic, with potential consequences for global trade and economic stability. Market participants are closely monitoring further developments in U.S.-China relations, as expectations of reduced tariffs could boost market confidence and foster economic expansion.