President Donald Trump has canceled a planned hike in tariffs on China — for now.
The president announced Wednesday that he would be delaying the tariffs increase by two weeks as a “gesture of good will” in honor of the People’s Republic’s 70th anniversary this October.
Tariffs were set to rise by another 5% on Oct. 1, according to The Washington Examiner. But in a tweet Wednesday, Trump said that date had been pushed back to Oct. 15.
….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.
— Donald J. Trump (@realDonaldTrump) September 11, 2019
Trump’s trade war
Talks amid an ongoing trade war between the U.S. and China had halted over the summer — but that didn’t stop the two countries from digging their heels in with the announcement of new, competing tariffs.
China announced in August that it would place additional tariffs of 5% and 10% on roughly $75 billion worth of U.S. goods imported into the nation. The regime also announced a 25% tariff on U.S.-manufactured automobiles, as well as a 5% tariff on U.S.-produced auto parts.
Trump’s tariff hike came in response to this move by Beijing. Under his new plan, tariffs that were already set at 25% on roughly $250 billion of Chinese goods would be increased to 30%.
Additionally, tariffs on another $300 billion worth of Chinese goods would be raised from 15% to 20%.
On top of those tariff hikes, the president also strongly urged U.S. companies to refrain from doing business with China if at all possible as part of an effort to reduce the substantial trade deficit in favor of China and bring about trade parity between the two nations.
Extending an olive branch
But despite the tariff hikes, it looks like things could be looking up for U.S.–China relations. It was less than a month ago that Trump first announced the rise in tariffs, and the move soon after to push them back has some wondering if the increase will be canned altogether.
Additionally, Trump’s “gesture of good will” came hours after a similar move by Beijing, which had waived some of the new tariffs it had imposed on American goods like anti-cancer drugs and livestock feed, according to the BBC.
Hopefully, those acts of kindness from both sides will prove beneficial when trade negotiations resume in Washington later this month.
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