China Tariff Deadline Extended, More Talks Expected

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"President Trump announcing a delay in raising tariffs on Chinese imports has been in the works for some time".

Still US firms see the tariffs have gotten both governments to sit down at the negotiating table and seriously hash out their issues, Stratford said.

The U.S. Tire Manufacturers Association did not comment on the delay, but said it continued to monitor the situation. -Chinese relations will deteriorate and are "hedging their bets" by delaying investment or moving operations, a business group reported Tuesday.

In Tokyo, some China-linked shares were higher, with construction machinery maker Komatsu up 1.71 per cent at 2,873 yen and electronic parts maker Rohm up 2.05 per cent at 7,460 yen.

China's stock market surged Monday after U.S. President Donald Trump's decision to postpone a tariff hike on Chinese imports and state media expressed hopes the fight with Washington over Beijing's technology ambitions could be resolved.

Mr. Trump ordered the tariffs using his authority under Section 301 of the Trade Act of 1974, which allows the president to retaliate against any nation that violates global trade agreements or takes actions that restrict or burden US commerce.

Overall, China's CSI 300 index of large-cap companies is up 22.3 percent for the year to date, or about 11 percentage points more than the USA benchmark S&P 500 index.

Still, there remains general support for President Trump's tough approach to dealing with Beijing, with a narrow majority saying that the tariffs should remain in place or be increased while negotiations to forge a trade deal continue.

US Trump tweeted earlier today that the US has made significant progress on key issues like intellectual property in the ongoing trade negotiations with China.

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Trump initiated the trade war, which ate into company profits and contributed to stock market plunges, because of complaints over unfair Chinese trade practices - concerns shared by the European Union, Japan and others.

"Our members are hopeful that the uncertainty and losses and delays in business that have resulted from the trade negotiations and trade frictions will turn out to be worthwhile in the end", Stratford said.

She added that China will benefit from moving back to greater reliance on the US market, as "that will help build trust, which has been badly eroded recently", she said.

With the March 1 deadline approaching, the US and China have reportedly started to sketch out the broad outlines of a deal, although the tough work lies ahead.

Otto's opinion on the importance of the resolution of U.S.

Companies ranked "bilateral tensions" as a top challenge alongside chronic frustrations with rising costs and vague laws and enforcement in the state-dominated economy, the chamber said. Another 37 per cent expect relations to stay at their current fraught level.

"Though exports are only 10 percent of U.S. GDP, 43 percent of S&P 500 companies' earnings come from outside of the United States", said David Woo, a researcher at Bank of America Merrill Lynch, in a recent note.

US standards for power generation, manufacturing, fuel economy and emissions are above and beyond anything China puts upon itself.

Three-quarters of companies in technology and other research-based industries said market restrictions hamper their operations, it said.