US stock futures headed south in the overnight trading session, as tensions with China started rising again amid the US House passed a bill on Hong Kong, which requires a review of the situation in the city on annual basis to keep its special status in place. Needless to say that Beijing didn’t like the US sticking its nose into its internal affairs at all, and threatened to retaliate.
Before that, Chinese officials had said that they would buy massive amounts of US farm products, only if the US removed the tariffs on its exports. Here, we are talking about roughly $40/50 billion US dollar worth of US farm products, versus $20 billion purchased in 2017, before the trade relations between the two countries deteriorated. But that dream of Trump’s could turn out to be fiction.
As such, the optimism regarding a possible trade deal between the US and China has been shot down within a couple of days after the Washington negotiations. It looks like trouble is brewing again on the US-China trade front.