Daily Management Review

Trade Talk Progress Drives Trump To Delay Tariff Hike On Chinese Goods


Trade Talk Progress Drives Trump To Delay Tariff Hike On Chinese Goods
Since the trade talks between the United States and China have been “productive” and if the talks progressed as they have done, a deal can be sealed off between the two countries, therefore US president Donald Trump has announced the extension of the delay for an increase in U.S. tariffs on Chinese. Pursuant to successful negotiations, he and Chinese President Xi Jinping could meet up to seal a trade deal, Trump also said.
This announcement by Trump is the strongest indication about the success of the ongoing talks on trade between the two countries are going on well and the chances of an end to the seven month old trade war between the US and China which has rattles the world markets and global trade and slowed down global growth.
Trump and Xi had agreed to a 90 day truce in the trade war and Trump had postponed an increase of import tariffs on Chinese goods worth $200 billion from 10 per cent to 25 per cent till March 1 to allow the two sides to discuss and agree on a trade agreement. The increased tariffs were slated to be imposed from January 1 this year.
Trump made the announcement after the most recent round of negotiations between the two countries was extended into the weekend. The trade negotiations had made significant progress in a multitude of areas including intellectual property protection, technology transfers, agriculture, services and currency, said Trump in a tweet.
These developments in the drove Trump to say: “I will be delaying the U.S. 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!”
Mar-a-Lago is a property of Trump in Florida which has been used earlier for a meeting venue for the two men presidents.
No new deadline for the conclusions of the trade talks were set by Trump. However the president has reportedly told the U.S. state governors who had got together at the White House that there could be “very big news over the next week or two” if the negotiations went on well.
No specific details of the kind of progress that were being made in the trade talks were given by the White House.
The goal of an agreement was getting “closer and closer”, claimed an article in the Chinese official Xinhua news agency. However the report also warned that there can be greater difficulty in the negotiations during the final stages of the talks.
“The emergence of new uncertainty cannot be ruled out, and the long-term nature, complexity, and difficulty of China-U.S. trade frictions must be clearly recognized,” Xinhua said.
“We can’t be sure whether this constitutes a major cave or success because we don’t know the details of what has been negotiated. But ... agreeing to extend negotiations a few more weeks definitely is in China’s interests,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies in Washington.
“At this point, the U.S. has likely gotten all it’s going to get out of China.”
 There was intent for both sides to come to an agreement to end the trade war as suggested by the latest move, said J.P. Morgan Asset Management market strategist Tai Hui. In case there was a further increase in tariffs, it would have added on to the concerns of growth outlook for the US economy, he added.