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Trump delays tariff hikes on Chinese goods ahead of talks

This photo taken on February 22, 2018 shows a woman working at a textile factory in Haian in China's eastern Jiangsu province
Image copyrightGETTY IMAGES

US President Donald Trump will delay a planned tariff hike on $250bn (£202.8bn) of Chinese goods as a “gesture of good will”.

End of Twitter post by @realDonaldTrump

Earlier, China released a list of 16 US imports that will be exempted from tariffs including anti-cancer drugs and animal feed.

Significant US exports to China, like pork, soybeans and American-made cars, are among the goods that will still be hit by the hefty taxes.

Growing tensions

The world’s largest economies have been locked in a bruising trade fight for the past year that has hurt businesses and weighed on the global economy.

Tensions escalated in recent months and Washington said it would target all Chinese imports to the US with new duties by the end of the year.

Against that backdrop, both sides are preparing to return to the negotiating table.

Preliminary meetings are set to take place later this month in Washington before US treasury secretary Steven Mnuchin and trade representative Robert Lighthizer meet China’s Mr Liu in October.

Still, some analysts argue the latest gestures by the US and China have not brought a resolution to their trade row much closer.

“A broad settlement is not in sight,” Gary Hufbauer of the Peterson Institute for International Economics said.

“Beijing is prepared for a continuation of tariffs and hostile rhetoric through 2020. And Trump cannot back down without getting a storm of criticism from the hawks, both Democrats and Republicans.”

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