Over the past weekend, tensions between Washington and Beijing escalated sharply as both sides exchanged strong statements. The United States doubled tariffs on steel imports, raising them to 50%, which intensified concerns about further trade conflict. Despite this escalation, market participants found reason for optimism when news emerged about a planned phone conversation between President Donald Trump and Chinese President Xi Jinping, potentially scheduled for this week. Reuters reports that this development has injected a sense of hope for easing tensions in the strained U.S.-China relationship.
If the conversation takes place on Thursday, German Chancellor Friedrich Merz is also expected to join the discussion. Merz will be visiting Trump in Washington on that day, opening the possibility for a trilateral dialogue involving the leaders of three of the world’s largest economies. This format could represent a significant step toward resolving ongoing trade disputes and stabilizing global markets, according to the news agency.
Experts believe Washington is clearly eager to accelerate negotiations, especially as the 90-day suspension on mutual tariffs approaches its expiration. According to a draft letter addressed by the Trump administration to U.S. trade partners, the government is insisting that they submit their most favorable terms on trade agreements by Wednesday. This pressure signals an urgent push to finalize deals before the current tariff pause ends, underscoring the critical importance of these talks.
The anticipated discussions come at a crucial moment when uncertainty surrounding trade policies has been driving volatility across financial markets. Investors worldwide are closely watching for any sign that the major economies might find common ground and ease the trade tensions that have disrupted global supply chains and affected economic growth.
In addition to trade talks, market watchers are also attentive to broader geopolitical developments and economic data releases scheduled for the coming days. The outcomes of these events will likely influence investor sentiment and set the tone for market movements in the near future.
Overall, while recent tariff hikes have increased risks, the possibility of high-level talks and cooperative dialogue is fueling cautious optimism among investors. The world remains attentive as these key discussions unfold, hoping for a breakthrough that can restore stability and promote economic cooperation between the United States, China, and their global partners.
