U.S. Potentially Delays China Tariffs after Resuming Talk of Trump and Xi at G20

The tariffs on an additional $300 billion of Chinese imports might be delayed which it has not been officially announced yet due to awaiting the resume trade negotiations between Trump and Xi at a Group of 20 summit in Japan on Saturday 29 June 2018. The U.S. Trade Representative Robert Lighthizer said the goal of this meeting is to create a path forward for a trade agreement after the previous negotiations have broken down.

A source familiar with the matter said it is not clear when will be the end of the tariff cease-fire or how long this is going to take because both of the U.S. and China wants to secure the benefit from each other. As a result, the resume talk is for seeking a better deal and aims to stop retaliation of the world’s two largest economies for soothing financial markets.

There are some advisers advise Trumps to avoid setting the deadline at the G-20, to prevent the same situation as in December 2018 and agreed to a 90-day tariff pause. Additionally, Lighthizer and other advisers said the tariff-suspension has been pausing to provide more time for renegotiation between the two countries. Although the negotiation last month was unsuccessful, Trump followed through on this threat to raise tariffs on $200 billion of Chinese goods to 25% from 10%.