The United States’ stock market continued to rise on Tuesday as investors grow less fearful of a trade war between the United States and China. The stock market began to rise on Monday when the Treasury and Commerce Departments opened tariff negotiations with the Chinese government. The ongoing market resurgence follows several weeks of falling stock prices as the Trump administration has incrementally levied tariffs on various products imported into America (Reuters). Monday was the best day for the U.S. stock market since 2015, with the Dow Jones gaining 669 points and the NASDAQ rising 3.3% (Washington Post).
United States Treasury Secretary Steven Mnuchin said on Sunday that the administration is “not afraid of a trade war” and will continue its gradual program of protectionism. The administration wants to reduce the trade deficit with China by $100 billion. The Treasury Department is also demanding that the Chinese government rescind restrictions on foreign entrepreneurship in China and more effectively combat intellectual property theft. As the Chinese government continues to oppose U.S. protectionism, the Department is calling on the Chinese government to reciprocate by eliminating tariffs on American cars (CNN).
Tags: China, Global Economy, United States, trade, Stock Market