Published: Tue, February 26, 2019
Global News | By Blake Casey

Trump delay on Chinese tariffs boosts hope of trade war truce

Trump delay on Chinese tariffs boosts hope of trade war truce

Sunday afternoon Donald Trump announced that trade talks between the US and China had been productive and chose to delay the imposition of new tariffs to the country.

President Trump tweeted: "I will be delaying the U.S. increase in tariffs now scheduled for March 1".

If the sides make further headway in negotiations, Trump said he and Chinese President Xi Jinping (習近平) planned to meet at his Mar-a-Lago resort in Florida to conclude an agreement, though he did not offer any details on when the meeting might be or how long he expects the tariff extension to last.

Trump had been threatening to increase tariffs from 10% to 25% on $200 billion worth of Chinese imports.

Mr Trump announced the delay on Sunday, without giving specifics, after his top trade negotiator Robert Lighthizer and Chinese Vice Premier Liu He wrapped up seven days of "very productive talks".

After a week of talks that extended into the weekend, Trump said those tariffs would not go up for now. Washington is demanding an end to the theft of trade secrets and practices that coerce USA companies to turn over technology to Chinese firms. -China high level talks that took place in Washington.

Trump delays tariff hike on Chinese goods citing trade talk progress
But his lead trade negotiator, US Trade Representative Robert Lighthizer, emphasized then that some major hurdles remained. The trade war between the world's two superpowers might be softening a little bit. after the two sides, according to Mr.

Gregory Daco of Oxford Economics said he expected that "a handshake agreement in which China will promise to import more agricultural products, work towards a stable currency and reinforce intellectual property rights protection will be achieved in the coming weeks".

The Trump administration has said it would insist on strong enforcement measures as part of any deal after complaining that Beijing failed to act on past reform pledges.

As CNN pointed out, the Shanghai Composite index (SHA:000001), which is the equivalent to the S&P 500, Dow Jones, or NASDAQ indexes; rose over 5% on the news, this was the largest daily gain for the index since 2015.

Treasury Secretary Steven Mnuchin also insisted the deal would include a provision to keep Beijing from allowing its currency to weaken in order to circumvent United States tariffs but economists have said the complexities and monitoring of such an agreement would be tough to get on paper.

The source familiar with the talks played down the apparent tension between the top trade negotiator and the president, saying Trump, a former NY businessman, had viewed MOUs from a real estate perspective, while Lighthizer had done so from a trade perspective.

"If all works well, we´ll have very big news over the next week or two", Trump told state leaders at the Governors´ Ball in the White House Sunday evening.

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