Everitt Lawson Group analysts say escalation of tariffs by US and China could stall negotiations and prolong trade war for many more months.
In December last year, the US and China agreed to pause any further escalation of the trade war for a period of 90 days to allow the world’s two largest economies time to negotiate a favorable conclusion to the trade dispute that has caused a ripple of economic repercussions throughout the global economy.
After months of optimistic feedback surrounding the negotiations, the world had hoped a trade deal would was imminent but when US President Donald Trump reacted to China reneging on certain promises made during the negotiations by increasing existing tariffs on Chinese imports, Everitt Lawson Group analysts say hopes of a trade deal in the near future were dashed.
Trump announced that tariffs on Chinese goods to the value of $200 billion would increase from 10% to 25% this month.
Analysts at Everitt Lawson Group say that although both countries have experienced some negative fallout as a result of the trade war, it is possible that neither is suffering a serious enough economic downturn to prompt a speedy trade deal.
Given Trump’s decision to up the ante by escalating tit for tat tariffs in recent weeks, Everitt Lawson Group analysts believe the chances of a trade deal are rapidly decreasing. Meanwhile, China is saying that trade negotiations cannot move forward unless the US is willing to address and make amends for its wrongdoings.
Everitt Lawson Group analysts say that at this rate, a trade deal between China and the US will probably not happen before the end of this year.