United States (US) considering a currency agreement with China as a part of a partial trade deal - Photo: Special

JAKARTA (TheInsiderStories) – United States (US) President Donald Trump and Chinese President Xi Jinping plan to extended meeting at G20 Summit in Osaka, Japan next week, said the American leader on Tuesday (06/17). This meeting give a hope for financial markets and a trade truce that could stave off a fresh round of tariffs.

The US president said on his twitter account that he had a very good phone conversation with Xi. “our respective teams will begin talks prior to our meeting,”. Two leaders meeting took place when war trade tension increased. He also told that the meeting might very well go well by adding that China wants to make a deal.

“That is working out pretty much as I anticipated,” he said.

Reuters reportedly in Trump speech on Tuesday night on formally launching his 2020 re-election campaign, that he had taken out historic actions in trade relations between the Washington and Beijing.

Previously Mario Draghi, the president of the European Central Bank (ECB) and Christine Lagarde, the managing director of the International Monetary Fund (IMF) have warned that there are troubling developments arising from increased trade barriers and tariffs.

Two of the world’s most influential economic leaders said that international trade conflicts, particularly between the US and China, as well as other industrialized countries and Europe, would affect global growth negatively.

At the meantime, soaring trade tensions between the world’ largest economies reached its highest level as negotiations between the US and China stalled on the back of an increasing desire to place more tariffs upon imports.

Draghi said that the business model in Central and Eastern European countries is vulnerable to shocks as car exports in these countries account for nearly 30 percent of total manufactured exports, making them more defenseless against US President Donald Trump’s threats to increase tariffs on European cars and spare parts.

“Global trade has faced headwinds in recent years as trade-restrictive measures have outpaced liberalizing measures. The central and eastern European business model has become vulnerable to shocks to international trade and financial conditions,” he noted.

Last year, Trump threatened to impose 25 percent tariffs on all EU car imports, however, the decision was postponed for six months. “The effect of tariffs could be amplified, as a large share of goods crosses borders multiple times during the production process,” said Draghi.

On his part, Lagarde warned that these troubling developments will create an unfavorable climate for all.

“Global growth has been subdued for more than six years and the largest economies in the world are putting up, or threatening to put up new trade barriers. And this might be the beginning of something else, which might affect us all in a more broad way,” the managing director said.

Written by Willy Matrona, Email: theinsiderstories@gmail.com