First came a "gesture of goodwill" from Beijing, now announces the US President just such. In the fierce trade dispute between the US and China, both sides suddenly send out softer signals.
The US government intends to postpone the $ 250 billion increase in Chinese tariffs on Chinese imports announced in early October by two weeks to mid-October. This announced US President Donald Trump on Wednesday evening (local time) as a "gesture of goodwill" on Twitter. At the request of Chinese Vice Prime Minister Liu He, and given that the People's Republic is celebrating its 70th anniversary on October 1, it had been agreed to postpone the planned tariff increase for this tranche from October 1 to October 15 ,
The trade war between the US and China has been going on for months, increasingly burdening the global economy. Both sides gradually cover each other with ever new punitive tariffs.
For some time now, imports from China to the USA amounting to around USD 250 billion have been punished with 25% punitive tariffs. They were originally intended to be increased to 30 percent from 1 October. This should happen now until 15 October.
Beijing exempts products from customs duties
Trump responded to a signal of relaxation that had previously sent the government in Beijing. China had submitted a list of US products to be exempted from punitive tariffs. There are 16 types of products, as China's Ministry of Finance announced on Wednesday, including some medicines, medical equipment and chemicals. The ministry did not specify the volume of the products. Other exceptions would be examined.
The government newspaper Global Times spoke of a "goodwill gesture" in the trade war, before both sides resume negotiations in early October. Trump welcomed the Chinese step on Wednesday and spoke of a respectful gesture. "You did the right thing," he said in the White House. "It was a gesture." Hours later, his accommodating tweet followed.
…. on October 1st, we have agreed, as a gesture of good will, to move the increased tariffs on 250 trillion dollars worth of goods (25% to 30%), from October 1st to October 15th.
– Donald J. Trump (@realDonaldTrump) September 11, 2019
Trump's unpredictability irritates China
The cause of the more than a year-long trade conflict has been Trump's anger at China exporting far more to the US than vice versa. He calls for elimination of market barriers, criticizing copyright infringement and forced technology transfer in US companies operating in China, as well as government subsidies.
Later, the US president also called for structural changes in China and mechanisms to ensure compliance with an agreement. But the leadership in Beijing goes too far. Trump's unpredictability also upsets the Chinese side.
At the end of August, the trade conflict had once again intensified sharply: After China's government announced new punitive tariffs on US imports, Trump immediately called for a counter-strike and announced that it would raise all punitive tariffs on imports from China by five percentage points each.
The trade war is slowing economic growth in both countries and slowing down the global economy. Many analysts warn that the conflict could cause the US economy to slide into recession.
. (tagsToTranslate) United States (t) News (t) Politics (t) Foreign (t) Donald Trump (t) China (t) Punitive