Donald Trump to delay China tariff hike after trade talks ‘progress’

Donald Trump rehashes beef with La Var Ball during White House press conference

Donald Trump rehashes beef with La Var Ball during White House press conference

On Sunday, February 24th, Trump said via Twitter, "I am pleased to report that the US has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues".

"I am pleased to report that the USA has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues", Trump wrote on Twitter.

Well, at the end of this week, the US was set to raise the tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent.

Trump has issued positive but cryptic statements and tweets about the delay and the nature of progress made at the weekend, saying that a deal with Beijing is "very, very close" and talking about a "signing summit" with Chinese President Xi Jinping.

"We still have a little ways to go", he said of a deal.


On Twitter, Trump said negotiators also made progress on US agricultural sales to China.

"Substantial" progress was made on "specific issues" as the latest round of trade talks concluded, China's official Xinhua News Agency reported, without giving more details.

This announcement comes on the heels of a weeklong series of discussions held between US and Chinese officials.

The chamber said 19 percent of its companies were adjusting supply chains or seeking to source components and assembly outside of China as a result of tariffs. "We expect more U.S. crude to come to China as a result of Beijing's promise to increase USA energy imports", a Beijing-based trader told S&P Global Platts.

President Trump is doing what was once thought impossible by closing in on a deal with China on trade and for now, he has postponed increasing tariffs while the final terms of the agreement are hammered out. It was learned earlier that the USA was asking China to keep the value of the yuan stable to neutralize any effort to soften the blow of US tariffs. "I think you're better off just going into a document", Trump said on Friday to reporters.


With the March 1 deadline approaching, the US and China have reportedly started to sketch out the broad outlines of a deal, although the tough work lies ahead.

The question now is whether the trade deal between the two countries will amount to pledges from China to buy more American products, such as soybeans and liquefied natural gas, to narrow that gap, or whether the Trump administration can persuade Beijing to embark on painful structural reforms.

"This is clearly not the end of the negotiations, let alone the underlying tension between the two countries", said Louis Kuijs of Oxford Economics.

The United States also wants to curb Beijing's industrial subsidies, which Washington says fuels excess production.

Negotiators have been seeking to iron out differences on changes to China's treatment of state-owned enterprises, subsidies, forced technology transfers and cyber theft. Now there have been trade talks to avoid this.


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