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.
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