US tariffs will have 'catastrophic' effect on global markets, Chinese newspaper warns
A Chinese state-run newspaper warned in an editorial published late Tuesday that the effects of a nearly year-long tariff battle between the U.S. and Beijing could ultimately have a “catastrophic” effect on global markets.
In the editorial, the Global Times claimed the Trump administration is probably the “most pressured” in terms of negotiating a a trade agreement, because failing to do so could have serious repercussions for the markets.
“Analysts believe that if the two countries couldn't come to an agreement, and as a result the U.S. imposes more tariffs on Chinese products while China responds with fiercer countermeasures, it would be a catastrophic strike to global stock markets,” the editorial said.
Trump often uses the stock markets to gauge his success; on Tuesday, all three equity averages ended the day in positive territory after Trump said U.S.-China trade talks were going well.
His words further stoked the stock markets of the US, which reached the highest in two months and so increased pressure on the Trump administration to close the deal with China,” the editorial said.
A U.S. delegation, including Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, arrived in Beijing this week for the latest round of closed-door trade talks.
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Both sides have remained tight-lipped about any potential progress, but President Trump has hinted multiple times that he might consider letting a March 1 trade deadline -- in which a 10 percent U.S. tariff imposed on $200 billion of Chinese imports will increase to 25 percent -- slide if talks go well.