Trump Would ‘Rather Not’ Put Tariffs on China, Maintains Threat
Published On Jan 24, 2025, 3:24 AM
Former President Donald Trump stated he would prefer not to impose tariffs on China during a recent interview. Despite this, he continues to threaten tariffs as a strategic tool against China, particularly concerning fentanyl trafficking. His comments have generated positive reactions in the markets, with the Chinese yuan and stocks gaining in value. Analysts suggest that Trump's softer tone may indicate a reluctance to escalate trade tensions, especially as he navigates other geopolitical issues, such as relations with Russia and North Korea.
Stock Forecasts
FXI
Positive
Given Trump's recent remarks suggesting a softer approach to China amidst ongoing trade negotiations, there is potential for increased market stability in sectors sensitive to trade relations. This could positively affect companies focusing on international trade or those directly interacting with China.
GXC
Positive
The general outlook on the Chinese market is optimistic due to the recent gains in the yuan and Chinese stocks, which could indicate a recovery or bullish trend for investments in China. As Trump's comments soften trade implications, Chinese equities like the ones represented in the FXI ETF may see continued increased interest from investors.
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