tweeted: “The China trade deal is fully intact. Hopefully they will continue to live up to the terms of the agreement!”
Navarro then said his comments had been taken out of context. “They had nothing at all to do with the phase one trade deal, which continues in place,” he said, and instead referred to “the lack of trust we now have in the Chinese Communist party”.
Navarro’s initial comments caused momentary panic on the markets, with contracts on the S&P 500 index falling as much as 1.6%, according to Bloomberg, and the offshore yuan weakening.
Markets confused. Peter Navarro now saying his comments (that the trade deal was over) were taken wildly out of context pic.twitter.com/mFKZEWGUZl
— David Ingles (@DavidInglesTV) June 23, 2020
Trump has recently placed great store by the China trade negotiations, saying in an interview published on Sunday that he held off on imposing tougher sanctions over China’s treatment of its Uighur Muslim minority because of concern such measures would have interfered with trade negotiations.
“Well, we were in the middle of a major trade deal. And I made a great deal, $250bn potentially worth of purchases,” Trump told Axios when asked why he had not enacted Treasury sanctions against communist party officials linked to