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Trump delays tariff increases on Chinese products before negotiations

This photo taken on February 22, 2018 shows a woman working in a textile factory in Haian, East China's Jiangsu ProvinceCopyright of the image
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US President Donald Trump will delay a planned $ 250 billion tariff increase in Chinese goods as a "gesture of goodwill."

In a tweet, Mr Trump said that a 5% increase in fees scheduled for 1 October would be postponed by two weeks.

He added that the delay was requested by China and also follows Beijing's decision to remove some US tariffs.

This comes as both parties prepare for further discussions to resolve their longstanding trade dispute.

Last month, the United States announced that it would increase tariff rates on all Chinese products, including increasing the 25 percent tax on Chinese imports to 25 percent to $ 250 billion.

On Wednesday, Trump said Chinese Vice Premier Liu He had asked her to postpone the next tariff increase as of Oct. 1, coinciding with the anniversary of the People's Republic of China.

Earlier, China published a list of 16 US imports exempted from customs duties, including anti-cancer drugs and animal feed.

Large US exports to China, such as pork, soybeans and US-made cars, are among the goods that will still be hit by high taxes.

Increasing tensions

The world's largest economies are struggling with a deadly trade fight over the past year that has hurt businesses and weighed on the global economy.

Tensions have intensified in recent months and Washington said it would target all Chinese imports to the United States with new duties by the end of the year.

  • A quick guide to the US-China trade war
  • The US-China trade war in graphics

In this context, both parties are preparing to return to the negotiating table.

Preliminary meetings are scheduled to take place this month in Washington before US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer meet with Chinese Liu in October.

Some analysts, however, believe that the latest moves by the United States and China have not brought the resolution of their trade problems much closer.

"A broad settlement is not in sight," said Gary Hufbauer of the Peterson Institute of International Economics.

"Beijing is ready to maintain tariffs and hostile rhetoric until 2020. And Trump can not back down without being overwhelmed by the storm of criticism from hawks, Democrats and Republicans."

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