Fri. Sep 20th, 2019

USA and China soften the trade war with delays in the imposition of tariffs


ABC

Updated:

The commercial tensions between the US and China are mitigated after the decision of the American president, Donald Trump, of delay from October 1 to 15 the rise of 25 to 30% to Chinese imports worth 250,000 million dollars as a gesture towards Beijing for the 70th anniversary of the founding of the People's Republic.

Due to the fact that the People's Republic of China will celebrate its 70th anniversary on October 1, we have agreed, as a gesture of goodwill, to delay the rise in tariffs on "goods worth 250,000 million (from 25 to 30%), of October 1 to 15, ”Trump announced on Twitter. Trump said it was China's deputy prime minister and negotiating leader, Liu He, who asked him to delay the application for the anniversary.

By October 15, the United States and China will have already maintained their thirteenth round of economic and commercial negotiations, scheduled for the beginning of the month.

Shortly after the announcement of the US president, the Tariff Commission of the State Council of China decided to postpone until September 16, 2020 the application of tariffs to 16 US products, whose assessments were scheduled to take effect next Tuesday.

Among the goods affected by the withdrawal of the 25% tariff planned to enter into force on September 17 are thefish lime, various types of lubricant and raw materials necessary for the manufacture of anti-cancer drugs, the Tariff Commission said in a statement issued on Wednesday.

Soy, pork and automobiles are some of the products for which the imposition of liens has not been postponed.

"The Tariff Commission of the State Council will continue to carry out the elimination of encumbered assets from the United States and Canada, and will publish the list of exclusions in due time," the official statement said.

According to the state-run Rotary Global Times, "the exemption from levies on US products is an innovation in the Chinese tariff system," while the US has already applied similar measures to Chinese goods before. "The measure will benefit some companies in China and the US. UU. ”, Said the tabloid.

In the opinion of the member of the China Chamber of Commerce for International Trade Chen Huasheng, the measure will reduce the impact of the commercial war on the companies of the Asian country.

"We have heard opinions from the business sector and expect this exclusion (tariff) to reduce a potential negative impact from additional US levies," said Chen, quoted by the official China Daily.

Greater hardness in the future

Last September 1 took place the last episode of the commercial war that confronts Washington and Beijing with the entry into force of the 10 to 15% rise in Chinese imports worth 112,000 million dollars.

It is expected that on December 15 that same increase will be applied to the remaining imports recorded at 10%, to reach $ 300,000 million at 15%.

In retaliation, China launched tariffs of between 5 and 10% for US products valued at $ 75 billion.

Trump warned after the imposition of these new tariffs that if he is re-elected in the presidential elections of 2020 it will be "much harder" when negotiating a trade agreement and that, "meanwhile, the supply chain" of the Asian giant will "crumble."

With this conflict, Trump has set the goal of balancing trade between the two countries, widely favorable to China, but so far and despite the imposition of tariffs, it has had little or no result.

Trade tensions between the two largest world economies, unleashed after Trump's arrival at the White House in 2017, go beyond bilateral relations and have profound global consequences.

In its latest global growth forecasts, released in July, the International Monetary Fund (IMF) lowered its projections of global expansion to 3.2% this year, one tenth less than in April weighed down by doubts about the possible resolution of this dispute .

. (tagsToTranslate) tariffs (t) usa (t) china



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