President Donald Trump on Wednesday postponed to Oct. 15 the 30 percent U.S. tariffs on $250 billion in Chinese goods as a “gesture of goodwill” towards China. The country will be celebrating the 70th founding anniversary of the People’s Republic of China (PROC) on Oct. 1, the same day the tariffs were previously scheduled to take effect.
The tariffs of 25 percent previously imposed on $250 billion of Chinese goods were to have been increased to 30 percent on Oct. 1. In retaliation for this 5 percent boost, China hiked duties on $120 billion worth of U.S. exports to China.
In the same tweet announcing this move, Trump also claimed he took this action at the request of leading Chinese government officials.
“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,” tweeted Trump.
U.S. stock futures spiked more than 0.5% percent after news of the temporary stay.
Trump’s move also follows China’s action on Tuesday exempting 16 American products from additional tariffs for a period of one year. Announced by China’s Ministry of Finance, the exemption will take effect Sept. 17 and will end Sept. 16, 2020.
Analysts said the welcome announcement might be a sign of goodwill on China’s part ahead of the new round of trade talks meant to end Trump’s year-long trade war against China. The new talks are scheduled some time in October in Washington D.C.
The State Council Tariff Commission said the items on two separate tariff exemption lists won’t be subject to additional charges imposed by China on U.S. goods.
China also said tariffs already imposed will be refunded for products on “List 1.” These products include fish meal for feed, shrimp and prawn seedlings and cancer drugs. Companies can apply to China customs within six months for the refund.
Tariffs, however, will be non-refundable for products on “List 2,” including whey for feed and lubricating base oil.
List 1 includes:
1. Other shrimp and prawn seedlings.
2. Aster meal and pellets.
3. Other purpura (except coarse powder and pellets).
4. Fish meal for feed.
5. Lubricating oil.
7. Ring line, insecticidal ring, insecticidal nail, polythiane, etc. (including methylthiophosphorus, buprofezin, aspartate, indoxacarb).
8. Decitabine, fluorouridine, cyclophosphamide, gefitinib, capecitabine, raltitrexed, fludarabine phosphate, fluoride, cytarabine hydrochloride, gemcitabine hydrochloride, ectinib hydrochloride, ifosfamide.
9. Nonionic Organic Surfactant.
10. Mineral oil <70% lubricant.
11. Lubricants containing no petroleum or oils from bituminous minerals.
12. Medical linear accelerator.