Prior to Trump's meeting with Xi in Argentina on Saturday night, some of Trump's top advisors told him that the shaky markets were partly due to concerns over a brewing war with China. This led Trump to some sort of deal with Xi who was familiar with the matter.
When the two leaders' agreement became known on Saturday, Trump was confident that it would help stabilize the markets – and one day.
Unlike some of his advisors, Trump remains confident that his belligerent China policy will not move the markets. Instead, he has accused the Federal Reserve. He told people this week that his approval of Xi will eventually be historic.
Nonetheless, in the past few days he has shown some fears that his China move will not prove more stabilizing and expressed concern that prolonged losses could politically damage him
The President came in to revitalize his deal bring to. Opened on Friday with a tweet: "The talks in China are going very well!"
Also on Friday morning, Larry Kudlow, director of Trump's National Economic Council, told CNBC that Trump is ready to extend the current 90-day window of negotiation if it has "good, solid movement and good action " gives.
However, the Chinese trade adviser Peter Navarro, the White House hawk, changed his tone in CNN. Asked if the administration would disappear if problems with China were not resolved within 90 days, Navarro suggested that Trump "simply increase the existing tariffs on Chinese goods worth $ 200 billion".
"We have a president who will withstand that," said Navarro.
"President Xi and I want this deal to come about and probably also," Trump wrote on Twitter on Tuesday. "But if you do not remember, I'm a Tariff Man."
The Dow Jones Industrial Average collapsed by nearly 800 points on Tuesday, as investors realized that the agreement between Trump and Xi could not stem hostilities for long.
The White House says the agreement with Xi will lead China to buy large quantities of US agricultural produce to close the trade deficit, and includes an agreement from Beijing to ban the flow of fentanyl, a strong opioid, to throttle the US. In return, Trump agreed to delay plans to increase all current rates to 25% on January 1.
However, the details of the progression probabilities and details of the agreement were small.
News that the US has requested for the arrest of a Huawei executive in Canada on December 1, the day of the Trump Xi dinner, has only fueled a trade war with Beijing.