The trade talks are on between China and the U.S. but have not progressed much. There are various issues and hurdles that have to be addressed further, say U.S. officials.
The tariff war started back in July 2018. The two large countries have been hitting tariffs at each other and both the economies have slumped.
The financial markets and the supply chains across the globe have suffered from the tariff battle for almost a year. The tit-for-tat battle has been going on for long.
The U.S. had initially launched on its tariffs against China over various issues like technology transfer, intellectual property rights, and industry subsidies.
These issues were addressed last week over talks held at Washington last week and are heading towards a conclusion. However, certain issues are not satisfactory as yet, says a top trade official Clete Williams, from the White House.
President Trump has said that everything will be resolved in about 4 weeks. However, things are moving slowly.
Williams says that it is good that things are not rushed into. Specifics will have to be sorted out, he says. The existing tariffs have to be handled rightly.
An enforcement structure has been drawn between the two countries if the terms of the agreement are not adhered to, says Williams. Washington has the right to retaliate if the terms of the agreement are not followed by Beijing.
The slowing economy across the world has investors worried. Sarah Sanders, the press secretary from the White House has said that significant talks still remain. The two countries will remain in contact, says Sanders.
Wall Street has been on a continuous winning streak for almost a year and a half. Though investors remain cautious about the uptrend in the market, reports about the trade talks keep the market buoyant. The company earnings reports that have started to come in will continue to set the trend in the market.