US To Delay Increase In Tariffs On Chinese Goods After “Productive Talks”

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Washington:

US President Donald Trump said on Sunday he would delay a planned tariff increase for Chinese exports after the two sides praised “substantial progress” in trade negotiations, raising the possibility of a summit with President Xi. Jinping to close the agreement.

Trump said there could be “very good news” in the next two weeks, and he planned to meet with Xi at the Mar-a-Lago resort, the US leader. UU., In Florida, if more progress is made.

Leading negotiators met in Washington for four days of talks that ended on Sunday in an effort to resolve a month-long trade war that analysts fear could torpedo the world economy.

The United States had to raise tariffs of more than $ 200 billion on Chinese products on March 1, but Trump said it would now delay punitive tariffs after “very productive talks.”

“I am pleased to report that the US has made substantial progress in our trade talks with China on major structural issues that include the protection of intellectual property, technology transfer, agriculture, services, currency and many others. issues, “Trump wrote on Twitter.

The official Xinhua news agency used almost the same language, reporting “substantial progress” on those thorny issues at the talks led by Xi’s chief trade negotiator, Deputy Prime Minister Liu He.

The delegations “came a step closer to realize the important consensus reached” by Trump and Xi late last year, Xinhua said.

The report said the parties also agreed to “follow-up according to the instructions of the two heads of state.”

“Assuming that both parties make further progress, we will be planning a Summit for President Xi and me, in Mar-a-Lago, to conclude an agreement,” Trump wrote on Twitter.

“A very good weekend for the United States and China!”

‘Great news’

After changing the tit-by-tat tariffs by more than $ 300 billion in total two-way trade, Trump and Xi declared a truce in December and agreed to suspend other tariffs or retaliation for 90 days.

“If everything works well, we will have very important news during the next week or two,” Trump told state leaders at the Governor’s Ball at the White House on Sunday night.

Noting the many questions about the state of the governors’ trade negotiations, Trump added: “China is everywhere.”

“Let’s see what happens, we still have a bit to go,” he said of an agreement.

Trump started the trade war, which affected the company’s profits and contributed to the stock market crashes, due to complaints about Chinese unfair business practices, concerns shared by the European Union, Japan and others.

The Shanghai Stock Exchange led an upturn in Asian markets following Trump’s announcement of a delay in the rate increase.

The news also shot the currency markets with the yuan extending profits to a maximum of seven months, while other more risky and high yielding units also rose against the dollar.

Xi also had a positive tone in a letter Liu delivered to Trump on Friday, and said he hoped the negotiations would be conducted in a “win-win” spirit that would lead to a mutually beneficial agreement.

Analysts say the two sides are likely to trumpet mutual agreements to solve the easiest parts of the trade dispute: increase purchases of US products, more open investments in China and greater protections for intellectual property and patented technology.

The more difficult parts that cover issues such as the reduction of China’s ambitious industrial strategy for global pre-eminence, meanwhile, are another issue.

“This is clearly not the end of the negotiations, let alone the underlying tension between the two countries,” said Louis Kuijs of Oxford Economics.

It will be difficult to reach an agreement on how to enforce an agreement, Kuijs said.

“The underlying tensions over technology, China’s industrial policy and, more generally, its increase, will not diminish in the short term,” he said in a note.

Trump said Friday that an agreement on the manipulation of the currency will be included in the trade pact, but otherwise few details have been made public.

According to reports, Beijing has proposed a significant increase in its imports of energy and agricultural exports from the United States. However, a broader agreement could be difficult given the demands of the United States for far-reaching structural changes.