Asian markets tumbled yesterday after United States (US) PresidentDonald Trumpsaid he doesn't plan to meet Chinese leader Xi Jinping before a tariffs truce ends in March. But he shook his head and said no when reporters asked if the meeting would take place before March 2.
Trump was asked by reporters whether there would be a meeting in the next month or so, Trump replied: 'Not yet.
Trump's announcement on Thursday was a reversal for the President, who said last week that he planned to meet Xi to resolve any "final issues" before the trade deal.
However, Trump's recent comment had substantially aired negativity and dampened the hope of reform of quick trade pack, meanwhile impacting the global stocks dreadfully and fueling a steep slip in global stock markets including the United States & emerging market shares.
One senior administration official said the decision not to go ahead with a meeting between Xi and Trump before March 1 should not be read as a sign the talks were breaking down.
Trump and Xi may still meet shortly after March 1, but there is still work to do to flesh out a trade deal and prepare the U.S. president for a high-stakes meeting with Kim, scheduled for February 27 and 28.
Trump has been saying.
The report comes just a day after White House economic advisor Larry Kudlow said there is a "pretty sizable distance to go" before China and the USA reach a deal.
The US says it will raise tariffs on imports from China if they fail to reach an agreement by that deadline.
Trump claims that he is in a warm relationship with the Chinese president. The broad S&P 500 index shed 0.9 percent to 2,706.05. The benchmark 10-year yield slid four basis points to 2.66 percent, the lowest in almost a week.
The US stock market has fallen in response to the news, with hopes of a swift trade pact between the two leaders quickly dampened.
President Trump had set a deadline of March 2nd to reach an agreement on trade. After the 90-day "cease-fire" was announced, the Trump administration maintained tariffs on $200 billion worth of Chinese imports would rise from 10% to 25% if the two parties did not reach a deal before the deadline. Washington accuses China of stealing USA intellectual property and forcing American businesses to share their technology with Chinese companies. "They're making a mistake because they need to be prepared", he said.
A study released Wednesday by Tariffs Hurt the Heartland, a campaign opposed to tariffs, said an increase to 25% would reduce employment by 934,000 jobs and GDP by 0.37%.