Mere days before fresh tariffs on Chinese goods are set to kick in, U.S. stock index futures rose on Friday on hopes that the United States and China could reach a “Phase One” deal to end their trade war after the Trump administration set terms for an agreement.
The United States has offered to suspend some tariffs on Chinese goods and cut others in exchange for Beijing’s buying more American farm goods, U.S. sources said, although there has been no official announcement on the deal from either side.
Shares of chipmakers that are heavily exposed to China for revenues were up in premarket trading. Micron Technology Inc, Advanced Micro Devices Inc and Nvidia Corp rose 1%.
Apple Inc, often considered sensitive to news around trade, also edged up 0.5%.
MacDailyNews Take: Close? Here’s hoping “Phase One” starts the U.S. and China on the road to a more balanced relationship.
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006