Barely minutes after President Trump expressed his dissatisfaction with the ongoing talks between the US and the Chinese government over the bilateral trade between the two nations, stock markets in the US slumped slightly. The Dow Jones stock, on Tuesday, was first to go down over 200 points while the S&P 500 dropped by 0.3 percent and Nasdaq lost 0.2%.
This is despite the optimism that was expressed on Monday when the stocks gained over 0.2 percent following satisfactory evidence that the new wave of talks had averted a trade war between the two nations.
The president was responding to questions by journalists at the White House when he revealed that talks with China, although progressing well, were far beyond the prospect of reaching a deal.
It has also emerged that the US negotiators are by far divided on several issues of importance in the negotiations with most members of the negotiating team offering controversial and contravening statement on the progress of the talks. Advocates of free trade within the negotiators such as Larry Kudlow, Steven Mnuchin, and the White House advisor on trade, Peter Navarro are just among the few in the Trump team who don’t seem to rhyme well with each other on pertinent issues.
Conflicting statements, for instance, had been offered last week; that the US had reached at a deal with China in relation to the ZTE company, a China corporation which the US side accuses of having violated US sanctions on North Korea and Iran. Trump had to take to the media to reveal that no deal had been agreed upon on the said issue.
Yet again, the team had come under scrutiny on Tuesday following contradicting statements made by Mnuchin before the Senate where he hinted that the US was putting on hold its trade war agenda as negotiations were underway with China. This was inconsistent with details divulged by Robert Lighthizer, the US trade representative; that the US was proceeding to impose tariffs on controversial Chinese goods as negotiations were ongoing.
On the Chinese side, the officials stated that they were not certain on whether the agreements to be reached with the US through the negotiations would hold for long, given the volatile nature of the talks. Lu Kang, China’s foreign ministry spokesperson, admitted during a press briefing that future disputes would be undoubtedly experienced if negotiations proceed in the same manner as they are currently.