Trump’s administration delays recent tariffs on Chinese imports as trade talks continue.
As part of the trade war between the United States and China, Trump’s administration imposed several tariffs on Chinese imports. The last round of tariffs was about 15% on $160 billion in Chinese imports including phones, toys, clothes, and laptops. The recent report by the Wall Street Journal indicates that negotiators from China and the United States are making plans to delay the tariff from taking effect on Sunday 14th December 2019.
Trade War Continues But Trump’s Administration Suspends Tariffs
The trade war between the United States and China has been ongoing for a long time. As both countries battle, there have been upsides and downturns. A few months ago, Trump announced that he may consider delaying the 15% tariff on consumer imports worth $160 billion. The reason is that these tariffs will lead to a hike in the price of the products. This, in turn, will affect the consumers during holiday shopping.
By initiating this delay, both countries will be moving into phase one of the trade agreement. The trade agreement, among others, will allow producers of United States agricultural products export to China. However, it is important to note that neither the United States or China has signed the deal for the partial trade agreement yet.
As the news came to light, the United States stock market recorded gains on Tuesday morning. This isn’t a surprise since the tariff will affect businesses and consumers. The boost in the stock market was primarily from businesses that depend on Chinese imports in the United States.
For now, there is no way to determine when the trade war will end. Even with the partial trade agreement on the way, Trump has made it clear that he is not in a hurry to strike an agreement with China as he has no deadline in mind. He said he would wait until after the 2020 presidential election to sign an agreement.