US-China Trade Deal

An Equity Strategist of Bank of America Merrill Lynch Said US-China Trade Deal Might Boost Economy

When it comes to investment banking firms Bank of America Merrill Lynch is one of the top investment firms in the world. According to Savita Subramanian who is equity and quantitative strategies of Bank of America Merrill Lynch said that ongoing trade deal might boost country’s economy by 1-2 percent. US-China is in controversial trade war from last few months, and so far no country has got a benefit because of trade battle. Currently, both countries officials are having a trade talk. According to reports Trump administration is considering to sign a trade agreement with China. Savita Subramanian while giving an interview to favorite news channel mentioned that S&p 500 might grow beyond 10% in this new year if both countries signed a fair trade deal agreement.

Trump administration has already warned China that they are ready to put a vast amount of countervailing duties on Chinese goods if this trade deal does not go well. Now so far all the sources are stating that both the countries are indicating a sign of a good trade deal. According to Savita Subramanian US-China will have to stop imposing hefty amount of taxes on each other because it is somehow killing small scale industries. This trade war first started by Trump administration when they imposed a considerable amount of duties on Chinese imported goods in US soil and in return, China did the same.

However, now all small scale industries in the USA which are depended on the Chinese market are going through a tough phase, and some have even filed for bankruptcy. President Trump said he wants to stop China from stealing intellectual property rights and now if China agrees to a fair deal then Trump administration will possibly sign a trade agreement with China.

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