Trump officials see no Chinese concessions for tariff delays
WASHINGTON: China made no trade concessions after US President Donald Trump postponed 10 percent tariffs on over $150 billion worth of Chinese imports, senior US officials said on Wednesday, adding that talks aimed at resolving the trade fight would continue and markets should be patient, Reuters reported.
“This was not a quid pro quo,” US Commerce Secretary Wilbur Ross told CNBC television in an interview, using a Latin phrase meaning a favor exchanged for a favor.
Trump on Tuesday backed off his Sept. 1 deadline for imposing the tariffs on thousands of Chinese imports, including technology products, clothing and footwear, pushing it to Dec. 15 for certain items. US and Chinese officials also announced renewed trade discussions.
Both developments drew cautious relief from retailers and technology groups as the world’s two largest economies enter the second year of their trade dispute.
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Trump’s tariff delay coincided with recession fears in US markets sending stocks to their biggest one-day loss since October. The US Treasury yield curve inverted for the first time since 2007 – a possible recession signal – after China’s industrial output growth hit a 17-year low in July and Germany reported a second-quarter contraction in gross domestic product output.
The Dow Jones Industrial Average .DJI and Nasdaq Composite .IXIC both lost 3 percent, while the broader Standard and Poor’s 500 .SPX lost 2.9 percent.
White House trade adviser Peter Navarro, in a separate interview on Fox Business Network, said the decision to delay the additional tariffs was made to limit the pain on US businesses, which already had contracts to buy Chinese goods for the holiday selling season and had no way to avoid passing costs