General News

US and China trade war: What’s going on? How could this affect you? What happens next?

What’s going on?

Hello, I’m Josh Morrison, an investment analyst here at True Potential. This week we are going to be looking at the latest on the US China trade war.

While much of the media focused on Donald Trump’s government shutdown this past week, the more significant news for investors was talks in Beijing between the US and China on ongoing trade issues. President Trump described these talks as good, while China said they “laid the foundations” to resolve the ongoing US China trade dispute.

How does this affect you?

The seemingly positive nature of the negotiations helped to boost global stock markets. There’s increased optimism that the ground work has been laid to improve the current stand off. For investors this could be a good thing, as recent stock market declines have been linked to the ongoing trade disputes and tariffs between the US and China.

What happens next?

The Financial Times reports that China’s top economic official Liu He is to visit the US for trade talks in the coming weeks, which could be a sign that momentum is being built towards an agreement between the US and China.

However, if an understanding isn’t reached before March 2nd, President Trump has said he will increase duties on two hundred billion dollars worth of Chinese goods

Your capital is at risk. Investments can fluctuate in value and you may not get back the amount you invest. Past performance is not a guide to future performance. Tax rules can change at any time.