Donald Trump delays tariff hike on Chinese goods after 'great' trade talks


That 90-day period ends on Friday, but Trump announced Sunday night that he would delay raising the tariffs because "substantial progress" was being made in trade talks.

"I am pleased to report that the US has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues", Trump wrote on Twitter.

In a tweet, Trump wrote that should progress continue, the USA would plan a summit with President Xi Jinping of China to "conclude an agreement".

Pushing back the March 1 deadline to more than double US tariffs on more than $200 billion of Chinese goods will help soothe investor worries that a ratcheting-up of the trade war would derail a global economic expansion that's already showing signs of softening.

So far, the USA has imposed tariffs on United States dollars 250 billion worth of Chinese goods. 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.

But the cracks in the global economy, the stock market turmoil in the fourth quarter, Trump's flagging approval rating, and the pressure from the onset of the 2020 presidential campaign seem to have all combined to change Trump's thinking.

"There is still a yawning gap between the two sides on major issues due to US lack of trust in China's commitments on structural issues and China's unwillingness to make any fundamental changes to its industrial and economic strategies".

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Chinese officials did not answer questions as they left the U.S. Trade Representative's office on Thursday evening after more than nine hours of talks on Thursday.

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Trump said on Friday there was a "good chance" a deal would emerge.

President Donald Trump relitigated his year-old beef with sports media personality LaVar Ball, whose son, along with two other players, was apprehended in China for theft while he was playing basketball for UCLA in 2017. President Trump now says that the discussion with the Chinese has gone so well, he's delaying this rise in tariffs until they sort out an agreement. Tariffs and commodities were also on Sunday's agenda, he said.

The two sides also haven't agreed how to enforce any deal. That sparked a back-and-forth with Lighthizer, who argued that MoUs were binding contracts, before saying they would abandon the term altogether going forward.

"I have strong hopes that the two largest economies will be able to bridge their differences and reach a constructive agreement", said Carla A. Hills, chairman and CEO of Hills & Company, International Consultants, a Washington-based advisory firm on trade and investment.

The official Xinhua news agency used nearly the exact same language, reporting "substantial progress" on those thorny issues in the talks led by Xi's top trade negotiator, Vice Premier Liu He.