Trump delays tariff hikes on Chinese goods by two weeks
The delay in the increase in US$250 billion worth of tariffs from 25% to 30% will be in a ‘gesture of good will’, the US president tweeted.
United States (US) president Donald Trump on Wednesday said he is postponing an increase in tariffs on US$250 billion worth of Chinese goods by two weeks, on request from Beijing as both parties prepare for the upcoming trade negotiations next month.
The tariff kick-off date will shift from October 1 to October 15. The delay in the increase in US$250 billion worth of tariffs from 25% to 30% will be in a ‘gesture of good will’, Trump tweeted.
Trump added that the delay in the hike was requested by ‘Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary’.
S&P 500 futures climbed 0.5% upon the announcement while the offshore Yuan gained 0.3% against the greenback.
As the trade war drags into the fourth quarter of the year, trade negotiators on both sides have three more months before the trade war spills over into the new year. The global economy has been broadly affected by the trade war between the world’s two largest economies, and global markets have been beleaguered from the constant bickering between them.
‘Trump’s goodwill gesture suggests that the trade war is starting to bite and the US may be more eager to close a deal,’ Maybank Kim Eng Research economist Chua Hak Bin told Bloomberg.
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