President Trump Delays Increase to China Tariffs Due to “Substantial Progress”

Since first hitting the campaign trail in 2016, one of the topics that now President Donald Trump has hit one more than nearly any other (save “The Wall”) has been China. Thus, once ascending to the highest office in the land, the president has taken aim at the People’s Republic of China, resulting in a trade war that escalated throughout the past year. However, as an agreed upon “ceasefire” nears its end, there seems to be some progress in negotiations between the two superpowers.

This weekend President Trump announced he would delay a spike in tariffs rate that would impact $200 million in goods from China. As Axios notes, plans would have called for tariffs to increase from 10% to 25%. Previously these hikes would have occurred on January 1st before a 90-day truce was reached.

As you might expect, word of this extension came via Twitter, with the President writing on Sunday, “I am pleased to report that the U.S. 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. As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1.” The President continued, announcing a potential meeting with Chinese President Xi Jinping, saying, “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. A very good weekend for U.S. & China!”

The news of a potential summit with China is the latest trade-related development to come after tariffs dominated economic headlines last year. After railing against NAFTA for months, the President reached a replacement last year aptly dubbed the United States-Mexico-Canada Agreement. That deal has yet to be ratified by a Congressional vote.

So far the U.S. markets have reacted positively to the potential trade news, with the Dow up as much as 180 points midday. Of course it may be too soon to celebrate just yet as trade tensions have proven as volatile as the stock markets themselves. Ultimately we’ll have to see if the Mar-a-Lago meeting comes to fruition soon and if an actually on-paper deal can be reached before the twice-delayed tariffs do finally take effect.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Hawaiian Airlines Introduces Enhanced Bag Benefit for Cardholders

When it comes to travel credit cards, there are several routes that consumers can take. For some, a generic catch-all card may make sense, while others may prefer to leverage their brand loyalty by adding a co-branded travel card to their wallet. With the latter, travelers can often enjoy perks specific to their preferred airlines or hotel, allowing them to save money and/or time. Case in point: Hawaiian Airlines and...

Debt Payoff App Tally Raises $80 Million

A well-known FinTech app that offers debt consolidation to consumers has just secured a major investment. Today, Tally announced that it had raised $80 million in its latest funding round. The Series D was led by Sway Ventures, while Menora Mivtachim along with previous investors Kleiner Perkins, Andreessen Horowitz, Shasta Ventures, Cowboy Ventures also participated. With the new funding, Tally plans to further expand its debt pay-down platform and continue...

Bilt Rewards Announces Rent Day Offers, Increased Earning Rates

Six months ago, the Bilt Mastercard became available to more consumers after Wells Fargo came aboard to issue the card. Since then, the unique rewards card has continued to expand its offerings, including debuting its own travel portal and adding travel transfer partners. Now, Bilt has unveiled its Rent Day promotion, that will bring new benefits and perks to cardholders. The Bilt Mastercard is a rewards credit card that, most...