Is the US – China Trade War Coming to An End?

Is the US – China Trade War Coming to An End?

China and the United States have finally found some common ground, and it looks like the several-month-long trade war is finally coming to an end. The question everyone is asking now is, who won and is the war actually over?

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After a meeting in Bejing this past weekend, the Chinese and American governments came to an agreement about the ongoing trade war that would include both parties loosening their tariffs and blockades. One of the biggest parts of the agreement was China stopping their plans to further increase sanctions on American agriculture and energy commodities. Instead, they’ve agreed to lower the tariffs. In a joint statement, the two countries stated that they “agreed on meaningful increases in United States agriculture and energy exports.”

The main focus of the deal is on American beef, soybeans, and corn which are expected to see a great boost in sales for the next coming few months.

The situation then continued on Tuesday when the Chinese Finance Ministry announced that they will lower tariffs on certain American cars which gave GM, Ford, and Tesla stocks a well-deserved boost on Tuesday morning. Chinese car tariffs have been as high as 25 percent and will now be lowered to between 6 and 15 percent.

Who Is Winning the Trade War?

Most experts agree that the trade war is in fact still ongoing and that the agreement is more of a truce than a peace agreement. For now, the winner of the trade war is more about personal opinion than a conclusive outcome. Certain sources claim that the US isn’t tough enough and that China is getting away easy while others claim that the trade war is going according to Trump’s original plan.

Also, Japan and Russia has come forward saying the are ready to implement tariffs on the US if they don’t lift their steel tariffs, and the situation might en in the American government having to back on that.

At the moment, the only thing that is certain is that we will see more developments in the trade war over the coming weeks. And as the agreement progresses, we will see commodities being boosted and can expect to see stocks spiking

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