Unless President Donald Trump reverses an earlier decision — which he said he might — or U.S. and China negotiators reach some sort of agreement before then, the U.S. will impose additional tariffs on Chinese imports starting March 2.
Tariffs on $200 billion worth of Chinese imports will more than double to 25% from 10% currently.
In the meantime, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin completed two days of talks with Chinese officials, including a Friday meeting with Chinese President Xi Jinping, and both sides reported that progress had been made. They are set to resume talks next week in Washington.
Invesco’s chief global strategist, Kristina Hooper, says China will ultimately win the U.S.-China trade conflict because China “can play the long game.”
Speaking at the Inside ETFs conference earlier this week, Hooper explained that China is in a better position to withstand the conflict because it’s not a democracy.