Trump delays China tariff increase as trade talks approach

Negotiators from the two countries are due to meet in Washington in the coming weeks.

By John Harney and Jeffrey Black / Bloomberg News

WASHINGTON — President Donald Trump on Wednesday said he was postponing the imposition of 5% extra tariffs on Chinese goods by two weeks, a move that delays the next escalation of the trade war and brightens the backdrop for upcoming trade negotiations.

“At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th,” Trump wrote on Twitter.

S&P 500 futures climbed 0.5% and the offshore yuan strengthened 0.3% against the dollar. The yen fell.

Negotiators from the two countries are due to meet in Washington in the coming weeks to push forward talks to end the trade war that’s stretching into its second year, causing increasing economic damage. At the same time there’s little sign that substantive progress is being made on their differences, while Trump still has further tariff increases lined up.

On Wednesday, China announced a range of U.S. goods to be exempted from 25% extra tariffs put in place last year, as the government seeks to ease the impact from the trade war. While that move may create some good will in Washington, China is keeping the pressure on U.S. agricultural exports like soybeans produced in key Trump-supporting states.

Trump escalated the U.S.-China trade war in August when he announced an increase in the levy, already in effect, on $250 billion in Chinese goods to 30% from 25% starting Oct. 1. Further increases are planned for December.

Talk to us

More in Herald Business Journal

FAA spells out design changes needed in grounded 737 Max

The public will now get 45 days to comment, after which the FAA is expected to publish a final rule.

COVID and road closures have hampered Rucker Ave. businesses

The streetscape looks better, but pedestrian traffic hasn’t returned.

Lawmakers welcome return of passenger service at Paine Field

Everett’s airline terminal fills with passengers on Saturday; elected officials pledge their support.

Rogue Snohomish barber faces big tab for his political protest

Bob Martin must pay a $90,000 fine and may lose his license after defying stay-home order in May

Microsoft tries to salvage deal to buy TikTok, appease Trump

The president had floated plans for an outright ban of the app on national security grounds.

Why the Boeing vs. Airbus fight is coming to a head

The U.S. and European Union prepare to launch a barrage of tariffs on each other’s exports.

Local leaders react to Boeing’s grim news about cuts, delays

“Yet another devastating blow,” said U.S. Rep. Rick Larsen, D-Everett.

Boeing might end 787 production in Everett; 777X delayed

The company will slow production of the 787 and 777 models and delay first delivery of the 777X until 2022.

Passenger service resumes at Paine Field on Saturday

For now, the flights will be few and the frills are gone at Everett’s airline terminal.

The ‘Sub Man’ knows what customers want before they walk in

Wai Eng opened his shop 35 years ago. Once he gets to know you, he knows what to make you. Cash only!

Everett’s $1 million CARES funds go to bills, bars and diners

The city selected 50 small businesses and 11 nonprofit service providers for $10,000 to $100,000.

Bay Area bio-tech firm to open production plant in Bothell

Lyell Immunopharma is investing $50 million in a new manufacturing facility that will employ about 100.