For the second time since Dec. 1, the U.S. has delayed increasing tariffs on $200 billion worth of Chinese imports that were slated to take effect on March 2. Published reports suggest Pres. Trump is gambling he will be able to hammer out a final deal with China President Xi Jinping in a late March meeting likely to take place in Washington, D.C.
The president, in announcing the trade truce on Twitter last night, did not specify how long it will last or when the U.S.-China summit will take place. But global business leaders and those concerned about his “America First” trade approach were reportedly pleased by his decision.
After mid-level talks between negotiators for both countries, there was word that “substantial progress” was made toward an eventual deal, particularly in the areas of technology transfer and intellectual property. Nonetheless, concerns persisted that the U.S. and China remain far apart on the “core structural issues” for any new trade deal, and that any eventual agreement will not be transformative to the economic relationship between the two countries.