President Donald Trump tried Wednesday to reverse the stock market because he feared that his China trading business would not materialize. Beijing argued that Beijing sends "very strong signals" and that it looks at the pledges of President Xi Jingping.
The market closes on Wednesday as the United States celebrates a national holiday for the late President George H.W. Bush, whose funeral is being held in the Washington National Cathedral.
This gives the president 24 hours to repair the damage that had broken when the market slumped by nearly 800 points on Tuesday, after a series of tweets by Trump indicated that a trade war with China would resume next year could.
President Donald Trump sought to reverse a stock price crash because of fears that his China deal would fail
Trump joined Twitter to signal that a trade agreement with China is signed
The president returned to Twitter early Wednesday morning with a new series of tweets – this time claiming his belief in his Chinese deal after a two-and-a-half-hour dinner with Xi on the margins of the G20 summit in Argentina.
"Very strong signals will be sent from China as soon as they come home from their long journey, including stops, from Argentina. Not naive or anything, but I think President Xi meant every word of what he had said in our long and hopefully historic meeting. ALL topics discussed !, he wrote Wednesday morning.
The Dow fell 799 points or 3.1 percent. Fears of an economic downturn that could result from a failed deal to end the trade war with China.
"People are still very worried about the trade war," said Dan Suzuki, portfolio strategist at Richard Bernstein Advisors to CNN. "Financial markets are increasingly afraid of a recession."
Trump did not help when he tweeted "I'm a Customs Officer" and investors saw a sign that a deal might not materialize.
"We will either have a REAL DEAL with China or no deal at all, at which point we will charge major tariffs against shipping Chinese products to the United States," he wrote Tuesday in a tweet that led to the Stock prices fell.
Washington and Beijing agreed to a 90-day ceasefire at their meeting in Argentina, as both sides are trying to work out an escalating trade war.
The president issued a new series on Wednesday announcing the China deal
Plunge: The Dow Jones fell into free trade on Tuesday after Trump's intervention, closing nearly 800 points
Trump has agreed to delay an increase in tariffs on China as the talks continue.
But details of what exactly the two sides agreed to were vague, and the White House helpers had difficulty explaining what the two countries actually agreed.
And China has not confirmed that it has made the most concessions the Trump administration has claimed.
Trump announced on Wednesday the approval of Beijing to determine fentanyl as a controlled substance. Fentanyl mixed with heroin has led to an increase in overdose in the US.
"One very exciting thing from my meeting with Chinese President Xi is the promise to me to punish the sale of the fatal fentanyl coming to the United States. It is now considered a "controlled substance". This could be a game change, what is …….
….. considered by all to be the worst and most dangerous, addictive and deadly substance. Last year, over 77,000 people died of fentanyl. If China goes against this "horror drug" and uses the death penalty for distributors and pushers, the results will be incredible! "Trump wrote Trump in a pair of tweets.
Trump sent down markets on Tuesday as a series of tweets prompted investors to doubt the deal
Trump had met with Chinese President Xi Jinping on the sidelines of the G20 in Argentina
Trump announced China's agreement on fentanyl, which has led to an increase in drug-related deaths in the US
The president's leading trade advisor said on Tuesday night that "shaking hands" in the media was not necessary, even though he acknowledged that the administration had created confusion.
"Maybe it's the fault we do not communicate with each other," Peter Navarro told Fox News in a special report. "Maybe that's why I'm here."
Among the contradictory claims made by White House officials was whether China had actually agreed to lower its 40 percent tariffs on US cars.
In addition, Finance Minister Steven Mnuchin said Tuesday on the Fox Business Network that China agreed to buy $ 1.2 trillion. But he added, "If that's real," which raises some doubts, the US trade deficit would close with China, and "we need to have a negotiating agreement and have it on paper."
Many economists have expressed skepticism that much could be done to overcome the big differences between the two countries in just 90 days.
"The actual concrete progress made at this meeting seems rather limited," wrote Alec Phillips and other Goldman Sachs economists in a study.
The 90-day schedule started on Saturday and will hold a pay round in Beijing, which should come into force on January 1, said the White House on Monday.
By 1 March, the White House has set the deadline for action by the Chinese.
Trump's tweets on Tuesday dropped the market
Earlier this year, Trump had imposed an import tax of 25 percent on Chinese products for $ 50 billion. Subsequently, additional $ 200 billion worth of goods were imported at 10% duty.
These 10 percent tariffs should increase by up to 25 percent on January 1 if the US and China could not reach an agreement to at least delay this move.
In Buenos Aires, Trump agreed to postpone the planned US tariff increase by 90 days, while the two sides are negotiating the government's complaints regarding how Beijing systematically steals trade secrets and forces the US and other countries to: sensitive technology as a price to pass approval to the huge Chinese market.
In return, China agreed to buy an "un-agreed but very substantial" amount of US products, which the White House called the US to reduce China's shrinking trade deficit.