JAKARTA (TheInsiderStories) – The United States (US) decided to postpone the imposition of new tariffs on imported products from China to limit holiday session, said the US Trade Representative office on Tuesday (08/13). The ministry announced that it would postpone the imposition of a new import duty of 10 percent for various other Chinese products to Dec. 15, 2019.
Earlier, President Donald Trump decided to impose a new tariffs on US$300 billion’ Chinese goods which would be into effect on Sept. 1. He stated, “We are doing this in anticipation of Christmas, in case there is an impact on consumers. So we postpone it so that it does not affect the Christmas shopping season.”
Trump reportedly took the decision after receiving a report from Trade Representative Robert ‘Bob’ Lighthizer after had a telephone conversation with Chinese Deputy Prime Minister Liu He, Chinese Trade Minister Zhong Shan, and the Governor of China’s central bank Yi Gang.
Based an official statement, the two sides agreed to continue the telephone conversation in two weeks. Moreover, some products will also be exempt from the new import duty.
Last weekend, Trump has stated that the next round of trade negotiations between US and China may not happen, casting doubt on hopes that the two sides could dodge sweeping escalations set to take place in September.
Trump also announced Monday (08/12) the US would cut ties with Huawei Technologies Inc., a Chinese telecommunications and smartphone giant that has become a bargaining chip at the center of trade negotiations. While he added that ban could change if a deal were reached, the prospect of de-escalation has dimmed in recent days.
Trump has insisted that China “badly” wants a trade deal even though talks in Beijing turned to the prospect of a protracted and wider confrontation.
On Saturday the president tweeted that “China wants to make a deal so badly. Thousands of companies are leaving because of the Tariffs, they must stem the flow. At the same time China may be hoping for a Democrat to win so they could continue the great ripoff of America, & the theft of hundreds of Billions of $’s!”
Despite Trump’ latest Twitter comments, the prospects for a deal between the two sides appeared to have dimmed last week after Washington officially labeled China as a currency manipulator, following Beijing’s decision to let the yuan exchange rate to weaken beyond the symbolic level of seven yuan to the dollar.
Trump said the meeting among US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin, and their Chinese counterparts were currently scheduled to take place. But he also emphasized that he was not ready to make any deal. Tariffs on another US$300 billion worth of Chinese imports are scheduled to take place on September 1.
It marked an escalation of trade tensions between the world’ biggest economies after Beijing suspended its purchases of US farm products. The Chinese government has repeatedly rejected Trump’s claims that tariffs are causing an exodus of businesses from China and has also dismissed his accusations that China is ripping off or stealing from the US.
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