Trump Says China Deal ‘Fully Intact’ After Navarro Roils Markets

Trump Says China Deal ‘Fully Intact’ After Navarro Roils Markets

White House trade adviser Peter Navarro indicated on "The Story" Monday that President Trump had chose to terminate the China trade deal before claiming his comments were taken "wildly out of context" after stock market futures tumbled more than 400 points.

Peter Navarro, director of trade and manufacturing policy at the White House, told Fox News "it's over", when asked a question that was focused on the China trade deal.

South Korea reported 46 new coronavirus cases on Tuesday, bringing the national tally to 12,484.

"Hopefully they will continue to live up to the terms of the agreement", Trump said on Twitter. "The trade deal is on".

Financial markets were choppy, with USA stock futures initially turning negative and risk-sensitive currencies including the Australian dollar falling.

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US President Donald Trump has promptly denied a remark by an aide suggesting the US has chose to terminate a trade agreement with China. Navarro later said his comments "have been taken wildly out of context". The architect of the agreement, Trade Representative Robert Lighthizer, said last week that the phase one agreement was "enforceable" and the US fully meant to carry it through.

Created to ease mounting tensions between the two nations, the agreement saw China pledging to boost U.S. imports by $200bn and improve intellectual property rules, while the United States agreed to cut in half some of its tariffs on Chinese goods in exchange. "China tensions to escalate in the second half of this year in the run-up to the US elections", said Vasu Menon, senior investment strategist, at OCBC Bank Wealth Management in Singapore.

"I think that everybody here inside the perimeter and around this country now understands that China lied, and Americans died", Navarro said Monday.

Navarro has been one of the most outspoken critics of China among Trump's senior advisers.

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