Recently, Gary Locke—Former US Ambassador to China—said to CNBC that waiting till the 2020 election for a trade agreement is going to affect both the countries. Locke said, “I don’t feel it is in any side’s concern to wait until the election. The American consumers, Chinese workers, and their businesses are at menace.” Since the U.S.-China trade dispute escalated in the last few days, he stated this is really an indication of intensifying friction, probably a little bit more antipathy amid the main leaders of the U.S. and China. It does not forecast well for any kind of a trade deal.” Following US President Donald Trump declared in the past week that the U.S. plans to slap extra 10% tariffs on another $300 Billion valued Chinese merchandise, China in recent time let its currency fell to its lowest stage in over a decade.
After China’s retribution, stocks in the U.S plunged. The market was experiencing some of the lost ground following China pave a path for the yuan to reinforce. Locke added, “I feel this is a very bad indication on both sides. The levies will affect consumers. It is going to be on electronics, clothing, iPhones, and toys.” As per to ambassador, both nations need a diplomatic solution from this war before next year. “China is still extremely reliant on exports, in particular to the U.S. It exports more to the U.S. than it does to all the EU (European Union) countries combined. Almost 20% of the Chinese financial system is dependent on the country’s exports.”
Similarly, recently, Trump’s advisor was flexible regarding China tariffs, depending on how the trade discussions go. In spite of the intensification of the currency and trade fights amid China and the U.S., President Trump remains flexible to an agreement that would result in flexibility on tariffs, Larry Kudlow—White House’s Economic Advisor—said in the recent time. Kudlow told, “The certainty is we would prefer to negotiate. We are planning for the Chinese panel to visit here in September.”