Business tension between the US and China has been in the news since 2018. The root of this dispute is associated with trade balance, technical transfer and industrial policies between the two countries. In April, US President Donald Trump increased the tariff on Chinese goods by 145%, in response to which China imposed a 125% duty on US imports. This became a situation in which the economy and global supply chains of both countries came under pressure. The two sides agreed to temporarily reduce tariffs after negotiations in Geneva and meetings in London in June. However, this relief proved to be short -lived, as the deadline for putting high tariffs again in August was approaching.

According to the Reuters report, an official of the White House confirmed that President Trump has extended the tariff’s deadline for 90 days by signing an executive order. This decision was taken by Trump a few hours after postponing the questions of journalists, in which he was asked if he would carry forward the deadline of August 12. Trump appreciated China’s cooperation on the occasion and said, “We will see what happens.” This indicates that the conversation between Washington and Beijing is still going on and both sides are looking for a permanent solution.

Current tariff rates and economic impact
Currently, 30% tariffs are applicable on imported goods from China, including 10% Aadhaar rate and 20% phynell-related additional tariffs. These tariffs were imposed by the US in February and March. On the other hand, China has reduced its rate on US imports to 10%. Economic analysts believe that tariff expansion will not only affect the GDP of the two countries, but will also increase uncertainty in global markets. Investors will adopt a cautious stance, while the cost of companies dependent on import-export may increase.

Potential future and global reaction
If there is no concrete agreement in the coming 90 days, then the tariff rates can again go to a higher level, which can lead to a huge decline in global trade. America’s leading business partners and international institutions such as WTOs can try mediation to end the dispute. Experts believe that this deadline expansion is a strategic break, which will give the two countries a chance to resolve issues through dialogue, but if the agreement is not reached then it can start the “Trade War 2.0”.

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Stock market today: Due to peace after ceasefire in West Asia, the market has gained momentum for the fourth consecutive day on the last business day of the week. The hope of cutting rates from the US Federal Reserve and the softening of crude oil has also strengthened the market. After this, a 30 -digit Sensex was trading up 140 points on BSE at around 9.15 am. While the Nifty-50 on NSE is also open at 25.574.35 by jumping 25.35 points.

Global market boom

The Asia Pacific market also looked strong on Friday. The positive message of the White House jumped 1.22 percent from the positive message of the White House amid a soft trend on the deadline of the tariff, while the topics index saw a rise of 1.1 percent. Along with Kopy of South Korea, Australia’s ASX 200 has also recorded a jump of 0.4 percent.

If we talk about the US market, the market was seen in the market on Thursday and while the S&P 500 rose 0.8 percent, the Nasdaq Composite increased by 0.97 percent and Dow Jones increased by 404.41 points.

Sensex up 1000 points a day before

Last Thursday, there was a tremendous rise in the market due to the reduction of Bhurajnical Tension, while the Sensex climbed 1000 points on one side, the Nifty also rose 304 points. Market experts believe that the sentiments of investors have strengthened due to peace in West Asia and positive trends at the domestic level. Ajit Mishra, Vice Chief Research of Railways Broking Limited, says that the markets climbed more than 1% on the day of disposal of monthly futures contracts. From the beginning of the session, with positive business, better global signs were instrumental. The purchases in Chuninda big companies strengthened.