Breaking news today occurred in trade talks between the United States and China. National Review reports the positive turn, “After several weeks in which negotiations over a potential trade deal between the world’s two largest economies had stalled, Chinese and U.S. officials spoke over the phone Tuesday.”
Reportedly “news of the reignited negotiations” arose after U.S. Trade Representative Robert Lighthizer’s office “announced the U.S. will delay a planned 10 percent tariff on $300 billion in Chinese imports.”
China and the United States have been back and forth relating to trade agreements and tariffs. “In May, the White House raised tariffs on $200 billion of Chinese imports from 10 percent to 25 percent, claiming Beijing had reneged on previously agreed terms of a trade deal.” China responded with increased tariffs of “up to 25 percent on $60 billion worth of U.S. products.”
Reuters reported the specifics at play were that “President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs.” The tariffs are of particular importance because they relate to Chinese imports on consumer goods such as cellphones and laptops that the President does not want to impact holiday sales in the U.S.
President Trump told reporters, “we’re doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers…what we’ve done is we’ve delayed it so that they won’t be relevant to the Christmas shopping season.” In addition to a merrier Christmas, investors picked up on the positive impact starting trade negotiations will have and sent the DOW soaring.