Highlighting some of the positives evolving in the trade tariff war, Zee Business Managing Director Anil Singhvi has outlined 2 major developments:
Trump ready to make deal with China
On Tuesday, the US administration hinted that it is ready to make a deal with China, nonetheless it wants China to take the first move.
“The ball is in China’s court: China needs to make a deal with us, we don’t have to make a deal with them,” While House press secretary Leavitt told a press briefing. She added that the statement was directly given out by the US President Donald Trump in an Oval Office meeting.
“”China wants what we have … the American consumer, or to put another way, they need our money,” Leavitt added.
First part of trade deal signed between India and China
Singhvi emphasised that the terms of the first phase of the bilateral trade deal between India and US have been signed. India as part of it has decided to tread the path of trade liberalisation with the US.
The two nations agreed in February to work on the first part of the deal to be concluded later this year. The countries aim at to reach a bilateral trade worth $500 billion by 2030.
He also added that the US Vice President is expected to visit India later this month.
What is the good news on the tariff war? Anil Singhvi’s view
Anil Singhvi underscored that for the second time – America has softened its stance on China. Earlier, the US administration exempted electronic devices including smartphones, computers as well as other electronic devices from “reciprocal” tariffs, including the 125 per cent levies imposed on Chinese imports.
Now as the US government awaits Chinese response, any positive response from Chinese authorities will lead to a rally in the global markets.
However, if it continues to show an arrogant stance then recovery of the global market may be put on hold.
Trump is right when he says, ‘Now the ball is in China’s court on the tariff war’, he added.
