On Monday, White House trade adviser Peter Navarro stated that the Phase 1 trade deal between China and the US was over. As a result, stock markets briefly took a dive before Navarro and President Trump clarified the comments.
Speaking on Fox News, Navarro was asked about the current state of the trade deal, and whether or not it is still valid, to which he responded “It’s over.” However, he soon clarified that he was referring to the lack of trust the US government has of the Chinese Communist Party with regards to the origins of the coronavirus pandemic.
In the meantime, Donald Trump took to Twitter to reinstate Navarro’s clarification, stating that the Phase 1 trade deal is still valid, despite the growing tension between the two countries.
According to Navarro, the US was only made aware of the coronavirus outbreak after the trade deal was finalized back on January 15, causing the Trump Administration to accuse the Chinese government of lying about the origins of the virus. As a result, tensions have been mounting, with the threat of a second Cold War becoming more eminent. Nonetheless, the Phase 1 trade deal has been Trump’s pride and joy, and some of his advisors believe he has nothing to gain by scrapping it.
Information for this briefing was found via CNBC and The New York Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.