US President Donald Trump's decision to delay a steep tariff hike on Chinese goods as he touted progress in weekend trade talks was greeted with a mixture of relief and dread among US industry groups and lawmakers on Monday (Feb 25).
"I am pleased to report that the USA 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.
Without a delay to the March 1st deadline, the 90-day trade truce agreed upon by President Trump and Chinese President Xi Jinping in December on the sidelines of the G20 summit in Argentina would have come to an end. and import duties on 200 billion US dollars worth of Chinese goods would have jumped from 10 percent to 25 percent.
The US President also floated the prospect of a summit "to conclude an agreement" with China's Xi should progress continue.
The vice president of the US-China Business Council, Jake Parker, said Trump's decision was a "positive signal".
US President Donald Trump said Monday he expects to hold a "signing summit" with China's President Xi Jinping to seal a trade deal, since as discussions are in the "advanced stages".
Trump had planned to raise tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports into the United States if an agreement between the world's two largest economies were not reached by Friday.
That probably explains why LaVar has never felt obligated to thank Trump, which apparently still upsets the president enough for him to talk about it nearly a whole two years since the incident.
Speaking to governors gathered at the White House for an annual black-tie ball Sunday, Trump said he was doing "very well" with China.
"It is better to delay now than cut a bad deal that doesn't deal the central issues of technology, joint ventures, and state subsidies", one former administration official said.
However, he said, "we don't foresee a significant rollback of existing tariffs, and see underlying tensions regarding China's strategic ambitions, its industrial policy, technological transfers and "verification and enforcement" mechanisms remaining in place". The US is the biggest importer of Chinese goods and China's trade surplus with the US is at its highest level in more than a decade.
But even after four rounds of talks, progress towards achieving the more hard parts of a deal has been unclear.
"But they also think that maybe the tariffs have done some good in provoking very serious negotiations between the two sides", Stratford told Reuters earlier.
Trump said Friday that an agreement on currency manipulation will be included in the trade pact, but otherwise few details have been made public.
Beijing has reportedly proposed a significant increase in its imports of U.S. energy and agricultural exports.
Asa Hutchinson, governor of the U.S. state of Arkansas, applauded both presidents for working hard to narrow the differences and reach more consensuses.