The US and China negotiators are planning to delay the new December tariffs, the Wall Street Journal writes today.
According to news, the planned 15th December tariffs would be postponed in the US China trade.
China officials are keeping quiet of the trade talks with the US, but on the other hand they confirm that the countries continue the communication, CNBC writes on Thursday.
According to the news, China did not comment about the possible additional tariffs, which are to start next week the 15h December if there is no deal before that. The countries have been discussing about the trade deal over a year now and it was widely expected that the Phase 1 could be reached by the end of this year.
Earlier this week the US President Donald Trump said that he has no deadline for the trade deal with China and said that it might happen that the deal would be closed after the US elections in November 2020.
The trade talks have been somewhat delayed due to the US Government legislation regarding the democratic movement in Hong Kong and the Uighur minority in Xinjiang. China has made statements that the US is interfering China´s internal affairs and also decided to suspend the US Navy visiting the Hong Kong ports.
The US has proposed 2,4 billion dollars tariffs on French digital tax, which came into force this year. According to Bloomberg, the US is also considering to probe Turkey, Austria and Italy over the digital tax as well.
The negotiation process is expected to start now and end in the early 2020 with France but continue with the new countries, Bloomberg reports.
According to South China Morning Post, China can levy tariffs of 3,6 billion dollars in US trade. The WTO made its decision on Friday related to an old dispute from 2013.
This means that the ongoing trade discussions between the US and China, will get new tariffs elements.
The leaders of the two countries were about to meet in Apec meeting in Chile in November, but the cancellation of the meeting has made the process and new timetable unknown.
The US President Donald Trump has said the US will delay some Chinese tariffs related to 250 billion dollars in the beginning of October 1st.
– At the request of the Vice Premier of China, Liu He, and due to the fact that the People´s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased tariffs on 250 billion dollars worth of goods (25% to 30%) from October 1st to October 15th, he tweeted.
The US and China have also earlier agreed that they will start the trade negotiations again in October.
The US stocks were declining on Tuesday trading, when the Chinese government said it has made a complaint to the World Trade Organisation over US tariffs.
The S&P 500 dropped 0.5% shortly, while the Dow Jones Industrial Average lost nearly 1 % to 26146 points and he Nasdaq Composite fell 0.38% 7932 points.
Also the European indexes closed down: Dax-index -0,14 % to 11936 points, FTSE 100 -index -0,26 % to 7262 points and CAC 40 -index -0,33 % to 5479 points.
The U.S. imposed new tariffs on Chinese goods including clothing, tools and electronics on last Sunday as Chinese tariffs also took effect.
“We expect there will be continued volatility in the market over the next 30 to 60 days, said one market analyst according to Wall Street Journal.
The US Trade Administration has delayed some tariffs with China. Tariffs, which were about to come into force in September, are now delayed until mid December. The goods, valued at 300 billion dollars, are related to some electronics, toys and clothings.
The US financial markets jumped after the news and Dow Jones -index is trading up 1,6 % and Nasdaq nearly 1,9 % up. The larger S&P 500- index is also trading up, 1,5 % and the Brent oil future is having over 5 % increase. Euro is trading at 1,12 dollars.