Trump Eyes a Bigger, Better Trade Deal With China

Published On Feb 19, 2025, 10:24 AM

President Trump is considering negotiating a new wide-ranging trade deal with China that would involve significant Chinese investments in the U.S. and increased purchases of American goods. There are concerns about the challenges to reaching an agreement, especially as China had previously failed to meet its purchasing commitments under the 2020 trade deal. Trump has recently increased tariffs on Chinese imports, setting a combative tone for future negotiations. This situation could impact various sectors within the economy and U.S.-China relations.

Stock Forecasts

SPY

Positive

Given Trump's approach to trade negotiations accompanied by an aggressive tariff strategy, it might lead to volatility in markets associated with US-China trade. However, if an agreement is successfully reached, companies benefiting from increased exports to China may experience a price lift.

QQQ

Negative

Conversely, companies that rely heavily on imports from China or have significant exposure to Chinese markets might face downward pressure if tariffs continue or escalate. This could result in a cautious sentiment around certain sectors such as technology and consumer goods.

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