President Donald Trump has announced that his proposed tariffs on $200 billion worth of Chinese goods will commence on May 10 if no compromise is reached. Ongoing trade discussions between the US and China have reportedly been nearing a mutually beneficial outcome for both countries that would end a longstanding trade war between them.
China has asked the US to backtrack from the proposed tariff increases and follow-through with a mutually beneficial trade deal, however, China has also stated that it is prepared to defend its interests. President Trump believes that China is backtracking on earlier commitments to address core complaints. A prolonged trade war between these two trade giants could significantly damage economic growth, thus investors have pulled money out of stock markets amid fears of the prospective agreement unraveling.
