Trump says he'll delay tariffs on China a day after China removed some of its own - but 'it does not mean an end to the trade war'
Andy Wong/AP Images
- Trump tweeted on Wednesday evening that he would be delaying tariffs on China by two weeks, in October.
- The tariffs were scheduled to come into effect October 1 and would be 30% levy on $250 billion worth of Chinese goods.
- The delay comes just a day after China removed some of its own tariffs on 16 American exports.
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Trump announced on Twitter on Wednesday evening that he would be delaying tariffs on China by two weeks in October.The tariffs that pushed the levy on $250 billion worth of Chinese goods up from 25% to 30% will now go into effect on October 15 rather than October 1. Advertisement
The President described it as a "gesture of goodwill" in the tweet, saying that the delay came "at the request of the Vice Premier of China, Liu He," due to the fact China would be celebrating its 70th anniversary as the People's Republic.
Investors are now debating whether the tariff changes signal a thaw in the dispute or a mood change ahead of talks which will take place at the start of October.Asian stocks move upwards on close, with the Nikkei and Shanghai Composite both up 0.8%, and US futures were also rising with the Nasdaq up 0.5% at 9 am in London (4 am EST.)"The gesture is constructive and follows China's move to waive tariffs on some US goods," said Neil Wilson, chief market analyst at Markets.com.Advertisement
But Wilson like other traders is still hedging their bets on whether a deal will be made in October. "But this is mere posturing, albeit it at least means we look to these October high-level discussions with a bit more optimism - is that a good thing?
"It does not mean an end to the trade war," he said. "Things are going to get interesting from here - what happens to the S&P 500 when the talks fail and tariffs are raised? It's set up for disappointment."Advertisement
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