Trump Delays Additional Tariffs on $250 Billion in Chinese Goods
Trump delayed tariffs on $250 billion worth Chinese goods in respect to the Peoples Republic of China, as there could be a limited trade agreement to delay more tariffs.
In a gesture of goodwill, U.S. President Donald Trump will postpone the tariff hikes on $250 billion worth of Chinese goods scheduled for Oct. 1.
Trump posted a Tweet on Wednesday night that he would delay the tariffs at the request of Liu He, China's top negotiator because the People's Republic of China will celebrate its 70th anniversary that day.
Some analysts, however, do not foresee a deal in the near future. CBS cited Height Securities analysts as saying: "Despite this more positive tone, we continue to doubt that a truly comprehensive deal is in the offing in the near future, but do expect that the October meeting could result in additional tariff delays."
Although the next round of minister-level trade talks will resume in Washington in October, the Trump administration has considered offering an interim trade deal to China, as reported by Bloomberg. A limited trade agreement with China would delay or even roll back some U.S tariffs in exchange for Chinese commitments on intellectual property and agricultural purchases, Bloomberg said.
Early this month, Washington imposed 15 percent tariffs on about $112 billion in previously untaxed Chinese imports. The U.S. also plans to impose a 15 percent tariff on approximately $160 billion in goods on Dec 15.
China retaliated by resuming its 25 percent tariffs on U.S cars and adding an additional 5 percent to 10 percent on $75 billion worth of goods, according to Axios. China also vowed to hit the U.S. with a second round of tariffs in December.