Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US delays China tariff increase as Trump claims 'substantial' deal

US delays China tariff increase as Trump claims 'substantial' deal

US had planned to raise tariffs on $250bn of goods to 30% but Trump tweets: ‘All would like to see something significant happen!’
Donald Trump announced a “very substantial phase one deal” to solve the long-running trade dispute with China.

After a two-day meeting in Washington between US and Chinese officials on Friday Trump announced a delay on plans to raise tariffs on $250bn worth of goods to 30% on 15 October.

A further 15% tariff on almost all remaining Chinese imports including laptops, smartphone, footwear and clothing is still set to be imposed on 15 December unless a deal can be reached with Beijing.

Trump said progress had been made on allegations of currency manipulation, intellectual property theft and other issues. China also agreed to increase its purchases of US agricultural goods and further open up its market to foreign financial services companies. The deal has not been written yet and may take weeks to finalize.

Speaking in the White House Trump said: “I think we have a lot of good faith right now.” He said the agreement was bigger than a trade deal. “There was a lot of friction between the US and China and now it’s a lovefest,” said Trump.

Earlier Trump had tweeted there were “warmer feelings” in US-China trade talks. The news helped boost stock prices with the Dow Jones Industrial Average closing up 319 points and the S&P 500 snapping a three-week losing streak.

“Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days,” Trump said on Twitter shortly after officials resumed negotiations for a second day.

“All would like to see something significant happen!”

This week’s talks are the 13th round of discussions aimed at ending a 15-month trade battle between the world’s two largest economies that has rattled stock markets worldwide.

The breakthrough came as negotiations had appeared headed for yet another crisis after Washington barred Chinese tech companies from the US in the wake of Beijing’s persecution of Muslim minorities.

Tensions were further exacerbated by a row over a tweet from Daryl Morey, the general manager of the Houston Rockets basketball team, in support of the Hong Kong democracy movement.

US tariffs on hundreds of billions of dollars in Chinese merchandise were due to rise on Tuesday.

Even a partial win would be a boon for Trump, who faces an impeachment firestorm and stinging criticism in Congress for his treatment of Kurdish allies in Syria, only the latest episodes of the White House’s perpetual turmoil.

But breakthroughs on trade talks have come and gone before. Since the China trade war began last year, moments of comity and cheer have more than once been shattered, giving way to jolting deteriorations in relations between the two sides.

In the spring, officials said a deal was more or less at hand, only to have Washington resume tariff increases in May, accusing Beijing of reneging on core commitments already put down in writing.

The US Treasury in August branded China a currency manipulator, accusing Beijing of deliberately weakening its currency to gain unfair trade advantages. The move made good on a Trump campaign pledge to crack down on China, a country he accused of “raping” the US economy.

In Beijing, the foreign ministry spokesman, Geng Shuang, also told reporters on Friday that China hoped “to promote positive progress” in the talks.

Media reports this week have drawn the contours of a partial deal that, while not addressing Trump’s biggest gripes about China’s trade practices, would offer something for both sides.

China will continue to increase purchases of US farm exports and pledge to refrain from currency manipulation while Washington will suspend a tariff increase, Bloomberg reported.

China has so far balked at Trump’s demands for profound changes in the way Beijing manages its economy, which analysts say could politically undermine the Communist party.

In an editorial on Friday, the party-owned China Daily said a partial deal “is a more feasible objective and one that would be in the common interests of both sides”.

Meanwhile, the Trump administration has continued to examine ways in which it could exert more pressure on Beijing beyond simply taxing Chinese imports.

Washington accuses China of attempting to dominate global industry through massive state intervention in markets, theft of intellectual property, hacking and subsidies, accusations shared by Europe and Japan.

Larry Kudlow, a top White House economic aide, said this week this could include heightened regulatory scrutiny of Chinese companies operating in the United States.

The president added in a later tweet he would also be able to skip the process of congressional approval: “When the deal is fully negotiated, I sign it myself on behalf of our Country. Fast and Clean!”

Congress has yet to ratify a revamped North American trade pact which Trump signed last year.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×