Trump delays tariff hikes on Chinese goods by two weeks
The delay in the increase in US$250 billion worth of tariffs from 25% to 30% will be in a ‘gesture of good will’, the US president tweeted.
United States (US) president Donald Trump on Wednesday said he is postponing an increase in tariffs on US$250 billion worth of Chinese goods by two weeks, on request from Beijing as both parties prepare for the upcoming trade negotiations next month.
The tariff kick-off date will shift from October 1 to October 15. The delay in the increase in US$250 billion worth of tariffs from 25% to 30% will be in a ‘gesture of good will’, Trump tweeted.
Trump added that the delay in the hike was requested by ‘Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary’.
S&P 500 futures climbed 0.5% upon the announcement while the offshore Yuan gained 0.3% against the greenback.
As the trade war drags into the fourth quarter of the year, trade negotiators on both sides have three more months before the trade war spills over into the new year. The global economy has been broadly affected by the trade war between the world’s two largest economies, and global markets have been beleaguered from the constant bickering between them.
‘Trump’s goodwill gesture suggests that the trade war is starting to bite and the US may be more eager to close a deal,’ Maybank Kim Eng Research economist Chua Hak Bin told Bloomberg.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.