There was a moment Monday evening when phase one U.S.-China trade deal seemed over and done, at least according to White House trade adviser Peter Navarro.
"It's over,” Peter Navarro told Fox News in an interview when asked about the trade agreement between the United States and China, causing volatility in markets already frazzled by the coronavirus pandemic. “it’s over... “Here’s, I think, the turning point,” he explained. “They came here on January 15th to sign that trade deal, and that was a full two months after they knew the virus was out and about.”
Markets tumbled in response to Navarro’s comments with the DOW shedding 400 points as investors reacted with shock, while the NASDAQ Composite closed Monday at over 10,000 for the second time in history.
President Trump Steps In President Trump walked back the remarks, saying, “The China Trade Deal is fully intact. Hopefully, they will continue to live up to the terms of the Agreement!”
What’s more, Navarro walked back his earlier remarks, saying the comments were “taken wildly out of context”. They had nothing at all to do with the Phase I trade deal, which continues in place.
Markets have since recovered the losses suffered during the White House's back-and-forth statements regarding the future of the United States-China trade deal. At the start of Tuesday trading, the Dow Jones Industrial Average was up 230 points, or 0.89%, while the S&P. 500 climbed nearly 24 points or 0.76%, and the Nasdaq Composite grew 60 points or 0.6%
Tensions between the world's two largest economies during the coronavirus pandemic have caused concerns that the future of the trade deal, with Trump accusing China over its role in the outbreak, including threats to apply financial penalties against China. As yet, the deal remains intact, prompting prices to continue their recovery from April’s historic lows.