Donald Trump delays US tariff rate increase to avoid escalating trade tension on China’s National Day
- Rise in tariff rate on US$250 billion worth of Chinese imports to 30 per cent moved from October 1 to October 15
- Delay comes the day after China exempted 16 types of US products, including medications, from import tariffs
US President Donald Trump said on Wednesday that he will delay a planned increase in tariffs on Chinese goods at the request of Vice-Premier Liu He to avoid escalating trade tensions on China’s National Day.
The new 30 per cent tariff rate on US$250 billion worth of imports from China, from the existing 25 per cent rate, had been moved from October 1 to October 15 in recognition of the 70th anniversary of the founding of the People’s Republic of China, which falls on the earlier date, Trump said in a Twitter post.
While the specific date of the talks has not been released, they are expected to take place before October 15, leaving room for a further postponement or even a cancelling of some tariffs if the talks in Washington produce a ceasefire.
“I think they did the right thing. I think it was good for them,” Trump told White House reporters earlier on Wednesday, referring to China’s exemptions. “But they took them off, yeah I think it was a gesture, OK. But it was a big move. People were shocked. I wasn’t shocked.”