After weeks of will-they-won’t-they speculation, President Donald Trump has confirmed that he will sit down with China’s President Xi Jinping at the G20 summit in Japan next week.
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting,” Trump tweeted Tuesday morning.
The Dow Jones Industrial Average surged 350 points on the back of the tweet as investors took it as a positive sign that the two sides are willing to work together to avoid further tariffs.
Among the retail stocks riding high were PVH Corp., up 3 percent to $91.03, Ralph Lauren Corp., 2 percent to $114.65; Guess Inc., 4.4 percent to $14.83; Macy’s Inc., 1.5 percent to $22.05 and Capri Holdings Ltd., 3 percemt to $34.89.
This is the first time that the two leaders will meet since trade talks broke down in late May after China allegedly reneged on a number of commitments it had made in previous negotiations.
The Trump administration responded by raising tariffs on $200 billion worth of goods, including handbags, to 25 percent from 10 percent. Like other rounds, China fired back with its own levies on U.S. imports.
Since then, the U.S. has been preparing to place 25 percent tariffs on all Chinese-made goods that have yet to be targeted, which would drag apparel and footwear into the fray.
Hearings are currently taking place in Washington, D.C., but Trump has indicated that a final decision won’t be made until after the G20.