The latest round of tariffs in the US-China trade war come into effect this weekend, which will see charges on almost all goods coming to America from China.
However, despite the new tariffs, there is some optimism that both sides are looking for a resolution and stock markets have risen over the past 24 hours.
James Bevan, chief investment officer at CCLA Investment Management, says the mood of the markets “oscillates between great optimism and some sense of pessimism”.
“The feeling had been that realistically Mr Trump might need to wait until after the 2020 presidential election before trying to cement a deal with President Xi,” says Mr Bevan.
“However, the optimism now is that Mr Trump has an election in 2020, he wants the US economy moving well, and the new tariffs about to be imposed are causing a certain amount of disgruntlement amongst Americans, and that doesn’t necessarily play well for his election chances.”