The proposed 30 percent tariff hike to Chinese imports into US, which was earlier supposed to be effective from October 1, have been postponed to October 15 to avoid coinciding with the 70th anniversary of the founding of the People’s Republic of China. US was supposed to increase the trade tariff of Chinese imports of 250 billion USD worth of goods and services from 25 percent to 30 percent on October 1.
In a tweet, US President Donald J. Trump have said that as a gesture of goodwill, the trade tariff of 250 billion USD of Chinese imports will be effective from October 15 as against October 1 which was the pre-planned date.
It is reported that this gesture from US President Donald J. Trump have come a day after the Chinese have exempted 16 US products including medications and insecticides from the first round of imports tariff. The trade waiver by Beijing is said to be the first of its kind from China since the beginning of trade war with US and experts have said that the gesture by Beijing reflected a toned down approach from China vis-a-vis the trade war.Chinese state run Global Times have said that the trade wars have caused much damage and that it was time to put an end to it.
The Chinese have exempted 16 US products from imports tariff for a period of one year starting September 17, 2019 until further negotiation. A high level trade negotiation meet between US and China is in the offing but no definite date has been set so far. The US China trade war is an ongoing trade conflict that had begun since the tenure of US President Donald J. Trump and he had called the US trade deficit vis-a-vis China as ‘unfair trade practices’. Donald J. Trump have propagated trade tariff to counter the imbalance of trade between US and her trading partners.