Trump Tries to Calm Global Markets After Stocks Drop Sharply

Donald Trump and Xi Jinping

Image Donald Trump and Xi Jinping have signalled a willingness to agree a substantive deal to end their trade war

However, after this decision of ceasing the trade war Donald trump on Sunday officially tweeted that China has agreed to lower the taxes on American made cars.

Technology companies led the rally, which followed gains in overseas markets as investors welcomed news of the trade pact, which was struck over dinner between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit over the weekend.

The White House said Xi said he was open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him.

However, it still remains unclear when the purchases will take place and whether China will remove the retaliatory tariffs on these products or not; Beijing may instead choose to reimburse buyers for the tariffs paid as they have previously done so.

Fears of a hotter trade war had sent financial markets tumbling in October and November.

The Dow Jones Industrial Average fell by about 799 points or 3.09 percent on Tuesday after Trump reminded China that he was "a Tariff Man" who could easily hike tariffs on Chinese goods if they failed to deliver on their promise to purchase American goods. The two countries have now agreed to a 90-day truce to work out a broader trade deal.

Amid the renewed tensions over tariffs, Mr. Trump held an unusual meeting at the White House with Germany's three largest automakers - Volkswagen, Daimler and BMW - seeking increased investment in their USA facilities.

Kudlow also kicked the trade can down the road even further, saying the truce would begin January 1, giving the two sides until April 1 - rather than the March 1 date initially mentioned - to strike a deal. Even though Beijing hasn't confirmed such a plan, shares in BMW (BMWYY) and Daimler (DDAIF), which export SUVs from the United States to China, soared more than 5% in Frankfurt on Monday morning.

Trump on Wednesday touted Beijing's agreement to designate Fentanyl as a Controlled Substance.

Traders work on the floor of the NYSE in New York 19/11/18
Image US stock markets endured a bruising session on Tuesday amid doubts a US-China deal is possible

That has in turn made US beans more than $60 per tonne more expensive than those from Brazil, which is due to begin harvesting a record crop in a few weeks time.

Trump, speaking to reporters on Air Force One after the plane departed Argentina, said his agreement with Xi, will go down "as one of the largest deals ever made". It will now be considered a 'controlled substance.' This could be a game changer on what is.

This means that the USA will not raise duties on Chinese goods at $ 200 billion to 25 percent at the beginning of the new year. 'Maybe that's why I'm here'.

White House National Security Adviser John Bolton told the Wall Street Journal event on Tuesday that Chinese theft of US intellectual property was among the administration's top concerns.

Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer, chief economic adviser Larry Kudlow and other administration officials met individually with executives from each of the automakers.

"The negotiations with China have already started".

'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.

China has said that Beijing and Washington will push forward with trade negotiations in the next 90 days and it is confident that an agreement can be reached but doubts remain over whether the two sides can resolve their deep differences.

Trump and White House aides have promoted the apparent U.S. If the two had failed to reach an agreement, the USA would've seen $200 billion worth of Chinese goods have their tariffs increase from 10% to 25% at the beginning of 2019.

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