US Donald Trump considers extending China tariff deadline by 60 days

The extension of the deadline is to give more time for the negotiations between the US and China to continue.

US president Donald Trump Source: Bloomberg

On Thursday, United States (US) president Donald Trump was said to be considering extending the deadline for higher tariffs on Chinese imports by 60 days.

The extension of the March 1st deadline is to give more time for the negotiations between the US and China to continue, people familiar with the matter told Bloomberg.

The sources told the media outlet that Chinese officials had requested for an extension of 90-days but that request was not accepted by the US.

Earlier on Tuesday, Mr Trump said he was open to extending the deadline if the two countries are close to a deal that addresses deep structural changes to China’s economic policies.

According to Mr Trump, the trade talks between the US and China are going ‘very well’, claiming that China is showing the US ‘tremendous respect’.

US-China trade talks held in Beijing this week

US officials are in Beijing, China on Thursday and Friday to draw out a trade deal. If the deadline is not extended from its original March 1st date, US tariffs on US$200 billion worth of Chinese imports will increase to 25% from 10%.

China’s delegation is led by vice premier Liu He, with participation from central bank governor Yi Gang, while the delegates with the US include trade representative Robert Lighthizer and treasury secretary Steven Mnuchin.

Mr Lighthizer and Chinese president Xi Jinping are scheduled to meet this week to discuss on the trade deal.

The US has been focusing on agendas such as alleged Chinese theft of intellectual property, ownership of American companies in China, and tariffs and non-tariff barriers.

The tariff war was implemented by the US to coerce China into agreeing to US’ trade terms. China has been calling for the imposed tariffs be removed as it affects their manufacturers and businesses due to the higher taxes charged on goods.

On Thursday, China’s exports boomed a robust 9.1% year-on-year increase in January, overshooting expectations from economists despite the trade conflict due to the seasonal effects from the Lunar New Year festive period.

Trump’s global trade war

Everything you need to know about Trump’s showdown with China.

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