U.S. seeks Progress in Trade Negotiations with China

Donald Trump said the delay in tariffs was a

Lower-level US and Chinese officials are expected to meet within days in Washington ahead of talks between top trade negotiators in early October, seeking to ease a dispute that for more than a year has rattled financial markets and fuelled fears of a global recession.

Mr Trump said on Twitter on Wednesday that the delay is "a gesture of good will".

"I'd rather get the whole deal done", he said, but noted analysts have been discussing the possibility of an interim deal "meaning we'll do pieces of it, the easy ones first". China had halted USA farm-product imports in August after negotiations deteriorated. Before that, Beijing had given the go-ahead for five companies to buy up to 3 million tons of USA soybeans free of retaliatory import tariffs, people familiar with the situation had said.

"We have agreed, as a gesture of good will, to move the increased Tariffs on 250bn dollars worth of goods (25% to 30%), from Oct 1st to Oct 15th", Trump tweeted. Some have been hit with increases a couple of times, while about $50 billion of US goods is unaffected, possibly to avoid disrupting Chinese industries. "I take the Chinese in good faith that they want to come here with a deal now". However, he stressed that Trump is holding out for a "good" deal for the US.

Meanwhile, Asian stocks surged over the news on Thursday (September 12th), as the concessions from both of the trade-war-struck countries were defusing a raft of trade tensions.

Not even the dire warnings of former US Treasury Secretary Lawrence Summers, and US Federal Reserve Chairman Jerome Powell have deterred President Donald Trump from his present course, says the writer.

Possible purchases of U.S. farm goods included pork and soybeans, Gao said.

Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars.

Not only would USA companies leaving China further dim United States economic growth prospects, but even the Wall Street Journal points out that if U.S. companies move their supply chains to south-east Asian countries, they will pay a high price and face labour shortages and poor infrastructure. "(China) hopes both sides would continue to meet each other half way and adopt concrete actions to create favourable conditions for negotiations", Gao said. The world's biggest consumer of pork accounted for about half of global demand a year ago, while it produced about 54 million tons, Citigroup said. Those tariffs will now kick in October 15.

China has imposed several rounds of tariffs on U.S. imports in the ongoing tit-for-tat dispute between the two countries.

Meanwhile, yellow soybeans from the U.S. are now subject to 30% tariffs and have largely been replaced by imports from Brazil.

Earlier on Wednesday, a survey by a prominent American business association showed the trade dispute was souring the profit and investment outlook for US companies operating in the world's second-biggest economy.

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