WASHINGTON, D.C.- As part of the agreement between the China and the U.S. announced Saturday, December 1, President Donald Trump is putting a hold on a 10% tariff on Chinese goods he'd planned on putting into effect.
Investment Advisor Mark Grywacheski talked about the agreement during Your Money, Monday, December 10. Grywacheski says the agreement comes with a lot of caveats though: It has to be reached within 90 days, and the markets don't believe the two sides are going to agree to terms that quickly.
"Most importantly, if this broader trade agreement isn't reached, it automatically triggers an escalation in this trade dispute," Grywachesi said Monday.
President Trump plans to increase tariffs on $200 billion worth of Chinese goods from 10% to 25% if the agreement is not reached. Grywacheski says once the markets fully understood all the caveats to the agreement, it triggered the massive sell off we saw in the stock market Tuesday, December 4.