U.S. Stock Market Rebounds On Report Of Trade Talks With China
Major U.S. stock indexes were up about 2 percent Monday morning after The Wall Street Journal reported that the U.S. and China have "quietly started negotiating" to improve U.S. access to Chinese markets. U.S. Treasury Secretary Steven Mnuchin is considering a trip to Beijing for negotiations, the newspaper said.
As of 10 a.m., the Dow Jones industrial average was up 468 points, or 2 percent, to 24001.23. The S&P 500 index was up 47 points, or 1.8 percent, and the Nasdaq rose 140 points, or 2 percent
Last Thursday and Friday, the Dow lost more than a total of 1,100 points amid increasing signs of a looming trade war between the two major trading partners.
The Journal, citing people with knowledge of the matter, said:
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Stock indexes around the world fell last week as the Trump administration prepared to impose stiff tariffs on Chinese imports in a bid to cut the U.S. trade deficit with China by $50 billion.
"The tariffs on China are a response to long-standing complaints that Beijing unfairly requires U.S. companies to share their technology as a cost of doing business in that country," NPR's Scott Horsley reported.
The Chinese government announced a list of retaliatory tariffs it would impose on about $3 billion worth of U.S. exports, in response to a separate set of U.S. tariffs on steel and aluminum imports. President Trump on Thursday signed a temporary exemption — until May 1 — from the steel and aluminum tariffs for Argentina, Australia, Brazil, South Korea, Canada, Mexico and the European Union.
Speaking Monday on Morning Edition, former U.S. Treasury Secretary Lawrence Summers said the U.S. should focus "on what is a major issue ... the forced transfer of valuable U.S. technologies to Chinese firms, and not concentrate on issues that are probably counterproductive for the American economy anyway, like steel."
Tariffs on steel and aluminum could hurt other manufacturers that use those metals to make everything from aircraft to Hershey's Kisses.
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