Trump hints at cutting tariffs on China.
This could reduce market ups and downs.
It might help start a market bull run.
United States President Donald Trump on Friday suggested a possible lowering of tariffs on Chinese goods, referencing what he called “really very good” talks with China.
At the White House, Trump said, “By the way, we have nice conversations going with China.”
This was a statement made a day after Trump implied that he may suspend or reverse future tariff increases. Highlighting the threat to consumer action, he stated, “I don’t want them to go higher because at a point you make it where people don’t buy.”
Cooling Trade Tensions
The softer tone represents a potential break in the aggressive trade policy that has characterized U.S.-China relations. Trump earlier this month placed a 10% tariff on a wide array of Chinese products, threatening to increase the rates. Tariffs now cover many items with rates increasing up to 145% in some groups, eliciting tough retaliation from China.
But in a major de-escalatory signal, Chinese officials last week indicated they would not play a “numbers game with tariffs,”
So, could this dramatic change of heart be the start of a market upturn?
A number of factors suggest a bullish outcome
A tariff pause or rollback would help restore some investor confidence, particularly in industries such as tech, manufacturing, and retail that depend on Chinese imports.
Lower tariffs would probably take pressure off prices, potentially lifting consumer spending—a main driver of the U.S. economy.
As one of the biggest economic showdowns, easing tensions between China and the U.S. could soothe global markets and ease fear-driven selloffs.
But will Trump come through? And if he does, will China play ball? Or is this merely a tactical timeout before more political gamesmanship?
What to Watch Next
Will the markets celebrate on this optimism? Might we finally see the beginning of a bull run if tariffs are formally lowered? Or will uncertainties persist and produce more choppiness?
As the talks go on behind the scenes, everyone is watching Washington and Beijing. The result may determine market mood for months to come.
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