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The White House proclaimed that discussions between the United States and China concerning a trade agreement have achieved “significant advancement,” however, no formal deal has been disclosed at this moment, causing uncertainty among investors.
Per a May 11 statement from the White House, additional information regarding the trade negotiations and the proposed “accord” will be unveiled on May 12.
“I am pleased to report that we have made significant advancement between the United States and China in these crucial trade negotiations,” Treasury Secretary Scott Bessent stated in a collective announcement with US trade representative Jamieson Greer.
“We will provide details tomorrow, but I can indicate that the discussions were fruitful,” Bessent proceeded, omitting the term “deal” entirely in his remarks.
Greer referenced the agreement yet refrained from disclosing any specifics regarding the negotiations, leaving investors in uncertainty about the essence of the announcement, as market participants persist in observing the ongoing trade conflicts for indications of relief for financial markets.
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Trump’s tariffs incite turmoil in markets and invoke widespread backlash
Though conventional financial and digital asset markets have recuperated and regained some of the value lost following the initial price disruption caused by US President Donald Trump’s extensive trade tariffs, investor apprehension still overshadows asset markets.
The Trump administration has vacillated on its tariff strategies, altering its stance on trade proposals or softening its rhetoric multiple times, leaving investors anxious and uncertain about investing in riskier assets such as tech stocks and cryptocurrencies.
In April 2024, the US Customs and Border Protection, at the request of the Trump administration, announced that selected tech products would be excluded from tariffs including smartphones, processing chips, computers, and various other electronics.
However, US Commerce Secretary Howard Lutnick retracted the electronic tariff exemptions one day following the announcement.
Lutnick mentioned that the tariff exemptions would be temporary until the administration officials reach a comprehensive tariff structure featuring varying tariff rates for different economic sectors.
The absence of a thorough, conclusive trade policy has raised questions about the Trump administration’s plans, with numerous observers asserting that the trade tariffs will only exacerbate disarray in financial markets and the overall economy.
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