Published: Fri, September 13, 2019
Finance | By Kristine Clayton

Trump Postponing Tariffs on China as a ‘Good Will’ Gesture

Trump Postponing Tariffs on China as a ‘Good Will’ Gesture

Tariffs of 25% that were imposed previously on 250 billion dollars (£200 billion) worth of Chinese goods were due to rise to 30% on October 1.

Hours earlier, President Trump announced on Twitter that he made a decision to delay - for two weeks - another round of tariffs increases on Chinese imports.

In a sign of the pressure being felt by the Chinese economy, the central People's Bank of China said on Friday it would cut the amount of cash lenders must keep in reserve, allowing an estimated $126 billion in additional loans to businesses.

Trump's announcement came after China said earlier Wednesday it is exempting a handful of USA products from the next round of sanctions set to begin September 17.

"China wants to claim the moral high ground before the October talks and to send a message of goodwill", sYao Xinchao, professor of global trade at the University of worldwide Business and Economics in Beijing, told the Washington Post.

In a tweet, Mr Trump said a 5% increase to duties scheduled for 1 October will be postponed for two weeks.

Donald Trump said he hoped to reach a trade deal with China following tit-for-tat exchanges of tariffs.

Beijing has said it would work on exempting some US products from tariffs if they are not easily substituted from elsewhere.

China retaliated by placing tariffs on $75 billion worth of United States imports.

The exemptions announced Wednesday will become effective on September 17 and be valid for one year, according to the Customs Tariff Commission of the State Council, which released two lists that include seafood products and anti-cancer drugs.

Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to meet in early October in the U.S. capital, but key officials are tamping down expectations for a major accord.

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