President Donald Trump on Wednesday, Sept. 11, said his administration has agreed to temporarily delay a planned tariff hike on Chinese goods “as a gesture of good will” after a top Chinese negotiator made a request as China is preparing for its National Day.
“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,” President Trump announced in a tweet on Wednesday evening, Sept. 11.
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….
— Donald J. Trump (@realDonaldTrump) September 11, 2019
The decision came the day after China released a list of 16 types of U.S. products that will be exempt from its first round of additional tariffs, according to the South China Morning Post.
China’s Customs Tariff Commission said its exemption will take effect on Tuesday, Sept. 17, and remain in place until Sept. 16, 2020.
A number of medicines and insecticides are included on the list of temporarily exempted U.S. products, while some others will be eligible for refunds on tariffs already paid.
“I think they did the right thing. I think it was good for them,” President Trump told reporters at the White House on Wednesday.
“They took them off. I think it was a gesture, but it was a big move,” he added.
The U.S. negotiators and Chinese counterparts, led by Liu He, are preparing for another round of high-level trade talks early next month after the negotiations broke in May over how to enforce any agreement.
The two sides have not set specific date for the negotiations, but likely to meet before Oct. 15.
Beside $250 billion of Chinese goods subject to higher tariffs on Oct. 15, the United States has imposed 15% tariffs on $112 billion of Chinese imports from Sept. 1 and plans to put tax on another $160 billion from Dec. 15.
China is imposing tariffs on an estimated $120 billion of U.S. imports, with duties of 10% and 5%. It also plans more increases from Dec. 15 in line with the U.S. penalties.
The Trump administration started to put punitive tariffs on Chinese products from July 2018, accusing China of ripping off the United States via theft of intellectual property, forced transfer of technology, cyberhacking, industrial espionage, and other unfair trade practices.
Speaking to reporters before leaving for a rally in North Carolina on Sept. 9, President Trump said the United States has to stop China’s international technology theft.
“If you look at what’s going on intellectual property theft with China, so you understand our country is doing phenomenally well,” he said.
“We have gained trillions of dollars and China has lost many, many trillions of dollars, including three million jobs, including companies that are leaving China. Yes, they want to negotiate very badly,” President Trump said.