On Tuesday, the US stocks tumbled after US president Donald Trump threatened to move ahead with his plan to put additional tariffs over the Chinese goods, dumping the wishful thoughts of a peaceful resolution of this ongoing conflict, ahead of G20 summit in Argentina, where the leaders are expected to meet and come in to a solution regarding souring US-China trade war.
Ahead of the G20 summit, where the leaders of world’s two largest economies are widely anticipated to meet and to enter a trade deal, Trump said that he would expect to raise tariffs on $200 billion in Chinese imports to 25% from 10%.
In the face of this withering comment, it appeared to be “highly unlikely” that Trump would accept China’s request to step off of the tariff hike, as it was mentioned in the Wall Street Journal. As of now, the market is experiencing a fragility and a tariff hike talk could only intensify the worries.
“Investors are looking for some positive news out of the G20, but until there is a concrete announcement on tariffs, investors will remain jittery,” Peter Cardillo, a chief market economist at Spartan Capital Securities in New York stated.
The downstream move came quite unexpectedly in Wall Street, as it started the week with high hopes of retail stocks gaining followed by a stunning holiday season.