Trump delays China tariffs on 'very productive' trade talks
US President Donald Trump tweeted on Sunday that he will be delaying the increase of tariffs on Chinese imports scheduled for March 1.
Donald Trump tweeted on Sunday that the delay was due to 'very productive' trade talks between the two countries.
Trump said he would delay an increase in US tariffs on Chinese goods scheduled for later this week, and said if progress continued he and Chinese President Xi Jinping would finalise a deal.
Trump had planned to increase tariffs to 25% from 10% on $200 billion worth of Chinese imports into the US if a deal were not reached by March 1.
Trump said in a tweet that progress had been made on a host of divisive areas including intellectual property protection, technology transfers, agriculture, services and currency.
He said: 'I will be delaying the US increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!.'
Aussie gains after Trump delays China tariffs
IG market analyst Kyle Rodda says 'much of this news has been baked into market-pricing, but the improved sentiment can still be observed'.
The AUD is the favoured proxy for trading trade-war headlines, and this has manifested in a slight jump in the currency this morning.
Yields on short-term bonds are a little higher, but interest rate markets haven't shifted much, while the yield on 10 Year ACGBs has actually fallen, showing that traders are reluctant to price in improved global growth conditions just on the basis of this story.'
The Australian dollar rose, and the yen sagged in early trade. The Australian dollar gained 0.3% to $0.7149, reacting to Trump's latest posts on Twitter.
The Japanese yen eased 0.1% to 110.77 yen to the dollar, while the offshore yuan strengthened 0.1 % to 6.6930 yuan against the dollar, also on the news.
Trump also said he would plan a summit meeting with Xi at his Mar-a-Lago estate in Florida to conclude the agreement.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
