US-China Trade: Diplomacy eases fears of global recession.
By: Newsdesk Team
City of London Newsroom
Fears of a global recession are easing a little after US President Donald Trump announced that he is to delay a planned tariff hike on $250bn (£202.8bn) of Chinese goods as a “gesture of good will”.
Last month, the US said it would increase the tariff rates on all Chinese goods, which included raising a 25% tax on $250bn of Chinese imports to 30% further igniting US-Chinese relations and increasing worries of a knee-jerk global recession.
In a tweet yesterday [Wednesday, 11th September] Trump said a 5% increase to duties scheduled for 1 October will be postponed for two weeks…
He went on to say that China’s Vice Premier Liu He had asked him to postpone the upcoming tariff increase from 1 October as the date coincided with the anniversary of the People’s Republic of China and also follows a move by Beijing to scrap some US tariffs.
Earlier, China released a list of 16 US imports that will be exempted from tariffs including anti-cancer drugs and animal feed. Significant US exports to China, like pork, soybeans and American-made cars, are among the goods that will still be hit by the hefty taxes.
The world’s two largest economies have been locked in a bruising trade fight for the past year that has hurt businesses and weighed on the global economy with tensions increasing in recent months prompting Washington to say that it would target all Chinese imports to the US with new duties by the end of the year.
Taking all that on board, the two sides are preparing to hold fresh talks aimed at resolving the long-running disputes with preliminary meetings set to take place later this month in Washington before US treasury secretary Steven Mnuchin and trade representative Robert Lighthizer meet China’s Mr Liu in October.