Dow futures tumble then recover after Navarro, Trump clarify China trade deal not 'over'
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Dow futures fell as much as 400 points before recovering Monday evening after White House trade adviser Peter Navarro said the trade accord with China was “over” but then clarified comments he made in an interview on Fox News.
President Donald Trump also weighed in, tweeting later that "The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!"
Futures on the Dow Jones industrial average briefly slid 400 points, but reversed course to rise about 59 points.
Navarro, had said in an interview with Fox News, said the “turning point” to terminating the trade deal with China came when the U.S. learned about the deadly virus after a Chinese delegation had left Washington after signing the "Phase One" trade deal on Jan. 15.
"It was a time when they had already sent hundreds of thousands of people to this country to spread that virus, and it was just minutes after wheels up when that plane took off that we began to hear about this pandemic," Navarro said.
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Navarro released a statement later saying, "my comments have been taken wildly out of context. They had nothing at all to do with the Phase I trade deal, which continues in place. I was simply speaking to the lack of trust we now have of the Chinese Communist Party after they lied about the origins of the China virus and foisted a pandemic upon the world.”
Ending the trade deal would reignite conflict between the world’s two biggest economies following an 18-month tariff spat that was a drag on global economic activity before the pandemic.