In an announcement, Donald Trump said his plan to hold up the tariff increase on products shipped from China to the US.
This brief came in the form of a Twitter post, citing “substantial progress” in trade between the two countries. Prior to this, Trump had threatened the tariffs from 10 percent to 25 percent on $200 billion worth of Chinese imports. U.S. Trade Representative Robert Lighthizer and China Vice Premier Liu He had been involved in a series of meeting, negotiating for several days in Washington. Trump’s announcement followed these negotiation meetings.
Trump indicated a delay in the tariff increase, considering the negotiators might make some progress.
“It’s not a big surprise, all the signs last week were that they are making enough progress to warrant a delay but not enough progress to make a final deal,” said Julian Evans-Pritchard, senior China economist at Capital Economics.
Though the details about the agreement have not been released yet, but Trump told the White House on Friday that a deal has been made on currency and currency manipulation.
“It seems to me that they’re still ironing out a lot of the issues and haven’t reached an agreement on larger structural issues and how all of this will be enforced,” said Evans-Pritchard.
A deadline has not been set for the tariff increase.
“Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement,” Trump tweeted.
Suffice to say, the consequence of the trade war between America and China has not only affected the economy of these two countries, but also the global economy has declined. Stock markets around the world have been hit by the trade war and are recovering from its negative impact.
Stock markets around the world await the end to this trade war.