Economy

Trump delays China tariff increase as trade talks approach

  • share this article

Negotiators are due to meet in Washington in the coming weeks to push forward talks to end the trade war, which is causing increasing economic damage as it stretches into its second year.

Thursday 12, September 2019

President Donald Trump said that he was postponing the imposition of five per cent extra tariffs on Chinese goods by two weeks, a move that delays the next escalation of the trade war and brightens the backdrop for upcoming negotiations, reported Bloomberg.

In a tweet, the US President, said, “At the request of the Vice Premier of China, Liu He and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of goodwill, to move the increased Tariffs on $250 billion worth of goods (25 to 30 per cent), from 1-15 October 2019.”

there is little sign that substantive progress is being made on the two countries’ differences, while Trump still has further tariff increases lined up.

Similarly, China announced a range of US goods to be exempted from 25 per cent extra tariffs enacted last year. While that may create some goodwill in Washington, China is keeping the pressure on US agricultural exports like soybeans produced in key Trump-supporting states.

Trump escalated the US-China trade war in August when he announced an increase in the levy on $250 billion of Chinese goods to 30 per cent from 25 per cent, starting 1 October. Further increases are planned for December.

 

TAGS : President Donald Trump, Vice Premier of China Liu He, US-China trade war, trade tariffs

print this article