The novel Coronavirus that was discovered in Wuhan late last year has now spread to several countries around the world, with more than 24,000 infections confirmed. 493 people have died from complications related to the virus, with all but one death occurring in China.

The United States hasn’t seen any major spread or impact on the economy, but major airlines have already suspended flights to China to limit risk.

Travel Bans and Flight Cancellations

The federal government announced on Friday that it would ban entry of anyone traveling from China who is not a U.S. citizen. There are exceptions for permanent residents and immediate family members of residents and citizens.

Monitoring and quarantine methods are also being employed at border points.

United Airlines, Delta Airlines, and American Airlines have all suspended flights to China, for an indefinite period. United and American have also suspended flights to Hong Kong until at least February 20 and will monitor demand before making any further decision.

China Likely to Request Flexibility on Trade Deal

China is ground zero for the Coronavirus, with infections and quarantine measures slowing the domestic economy. Officials may now ask for flexibility on the recently signed Phase One Trade Deal.

The trade agreement is slotted to take effect this month, but there is a clause in the agreement stating that the U.S. and China will enter further discussions if “a natural disaster or other unforeseeable event” limits either side’s ability to meet targets.

Under the deal, China will buy an additional $76.7 billion worth of American exports, including energy products, services, and agricultural products. With China now focusing on containing the spread of the virus and treating the sick, it could ask the U.S. for extra time.

Neither side has officially announced any delay in meeting terms, but analysts expect that China will do so in the coming days.

Markets are Still Confident

The economic impact of Coronavirus could be widespread in China. More than $400 billion was wiped from Chinese stock markets earlier this week, before a slight recovery on Tuesday.

American markets are performing much better, thanks to a strong earnings season and continued bullish sentiment.

Coronavirus has the potential to cause global economic disruption, especially if the Chinese manufacturing sector falters. Infection numbers are increasing at a concerning pace, and investors should watch the news cycle closely to monitor how it may impact the financial markets.