President Donald Trump’s government has opted to loosen up tension with Beijing by postponing part of the tariffs on Chinese imports scheduled for September until December 15, in a movement that arrives before the start of another round of bilateral negotiations next month.
This temporary relief of pressure from the new round of negotiations with China seems to reflect concerns regarding the impact that the trade war with the Asian giant has on the national economy, which has been growing in recent months.
It is planned that a delegation of the Chinese Executive travel to Washington in early September to continue negotiations on a future trade agreement between the two economic powers, although the exact date is unknown.
Just over two weeks after that meeting, the Office of the Foreign Trade Representative (USTR) today determined that the 10% tariffs on “certain items” of Chinese imports worth $ 300,000 million that they had to enter into force on September 1 must be delayed until December 15.
Products in this group include cell phones, laptops, video game consoles, certain toys, computer monitors and some items of footwear and clothing, according to a listing from the US commercial office.
For other goods, such as certain types of food, gloves, jackets and suits, tariffs will take effect starting the first day of September.
The USTR also reported that some products have been removed from the list of goods that will be sanctioned for encumbrances for reasons of “health, safety, national security and other factors.”
Speaking to reporters, Trump hinted that the announcement of the Commerce Department means an opening towards the Chinese government and said the delay is due to a call that was “very productive”, referring to a conversation held this week between the main negotiators Chinese and Americans.
The Government warned on August 1 of the imposition of new 10% tariffs on Chinese imports valued at 300 billion dollars as of September 1, despite the fact that trade negotiations between the two countries are still standing.
Despite the announcement of the commercial office, which has been very well received by Wall Street, Trump today accused China of not having bought the agricultural products that had been agreed in its rounds of previous trade negotiations.
“As usual, China said they were going to buy big from our big American farmers. So far they haven’t done what they said. Maybe this time it’s different!” The president tweeted.
The financial markets responded well to the announcement of the US Government with increases in the shares of technology firms such as Apple, which grew by about 5%, or clothing, such as Abercrombie & Fitch and Gap, which climbed 9 and 7%, respectively .
At one hour of closing, the Dow Jones of Industriales, the main indicator of Wall Street, increased by 1.69%, the composite index of the Nasdaq market amounted to 2.20% and the selective S&P grew by 1.76%.
The alleged calm has come after Trump added uncertainty last Friday to negotiations with China over a hypothetical trade agreement and threatened to cancel the round of talks with Beijing scheduled for September.
In recent days, Trump has also been very critical of the Chinese government for devaluing its currency against the dollar at a key level not seen since 2008.