The stock market went higher today due to the likelihood of a trade deal with China. China's Ministry of Commerce's Gao Feng was optimistic that Donald Trump and China would meet and come to an agreement. Donald Trump raised Tariffs on Chinese goods since he became president.

The ongoing trade war between China and the United States

Gao Feng announced that China will not administer retaliatory tariffs against the United States.

This announcement was after Donald Trump announced a five percent tariff increase on $300 billion of China's goods payable on September 1, 2019, and December 15, 2019. This a good signal that the trade war is close to being completed.

The end depends on both the United States and China resuming trade negotiations. Gao Feng stated that he was hopeful of all tariff increases being canceled. Bloomberg quoted Gao Feng as saying, "China has ample means for retaliation, but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation of the trade war."

The trade war has increased the price of goods purchased in both countries.

Both sides say that they want to set up a fair trade agreement. Gao Feng has confirmed that with his statement to try to end the trade war and remove the tariffs that have been increasing since the war began.

Both parties are hopeful that negotiations can resume

Feng announced that he is hopeful that the parties will meet in September. There has not been a solid plan for both sides to meet again. The prior negotiations were announced that they were close to agreeing, but they fell apart at the last minute.

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Donald Trump

Gao Feng's announcement is optimistic. Both sides have no definite plans to meet. Trump has said that the next meetings would be at "a different level." This is not specific about the meeting.

A different level could mean that tariffs could rise even higher. It also could mean that he believes an agreement is close and both parties are negotiating to end the trade war. Either way, the dialogue from both sides is encouraging that an end to the trade war could be completed and a fair trade agreement could be signed by both parties.

Investors react to the possibility of negotiations

The stock market as of late has been hit-and-miss. In the last week, the stock market has either risen higher or lowered dramatically. Today was no exception.

The stock market rose at once upon the news of the possibility of a meeting between China and the United States. It also helped some foreign markets late in their trading days. Investors were excited about the possibility of lower tariff rates.

Peter Cardillo, chief market economist for Spartan Capital Securities was quoted by Reuters saying, "We are seeing a bit of a softer tone that's giving investors hope." This is an economist for a major trading company. This will influence the markets in the foreseeable future.

Trade wars are a no-win game. One country raises its tariffs and the other country retaliates. Wars against trade are a never-ending game.

This trade war seems appears to be winding down. The end of the trade war will lower the price of the goods for both nations. The two countries have to begin negotiations and not leave the table until a fair trade agreement has been agreed.

Ending the trade war is important to the citizens of both nations. Donald Trump and Xi Jinping, the Chinese president must end the trade war and agree to fair trade. It will help both nations and the rest of the world since they are the two largest economies in the world.

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