Trump Delays China Tariff Increase as Trade Talks Approach

Cornelia Mascio
Settembre 12, 2019

The delay "shows Trump doesn't want to increase tariffs before the trade talks in early October and it creates good conditions", said Tommy Xie, economist at Oversea-Chinese Banking Singapore.

Last month, the USA said it would increase the tariff rates on all Chinese goods, which included raising a 25% tax on $250bn of Chinese imports to 30%.

The apparent cooling of the trade war couldn't come too soon for the United States, which has seen markets slump dramatically since the two countries started trading tariff hikes in earnest again last month.

Further rounds of Chinese exemptions will be announced in due course, the ministry said.

The negotiations in early October would be the first since talks broke down in May.

The world's two largest economies imposed fresh tariffs on each other's goods in September, escalating a tit-for-tat trade war that has been blamed for a worldwide economic slowdown.

Investors drew encouragement from China's decision to exempt some USA products from a recent round of tariffs.

Indeed, the exempted list pales in comparison to over 5,000 types of United States products that are already subject to China's additional tariffs.

China Vice Premier Lui He and President Donald Trump
US-China Trade War: Beijing Exempts 16 Items From Retaliatory Tariffs Ahead Of Talks

Instead, Mr Trump says, that will be delayed until October 15.

The exemption will take effect on September 17 and be valid for a year through to September 16, 2020, it said.

The Chinese economy is in a major slump.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

It looks as if it could lead to China buying USA agriculture products again.

Trump has offered billions in aid to farms badly damaged in the trade war.

But US businesses in China are increasingly pessimistic about their prospects, with a report released Wednesday saying growing numbers of companies expect their revenues and investment in the local market to shrink.

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