Trade Wars: Some solace for U.S. businesses;'US to exempt Chinese goods in transit from potential tariff increase' - FT
|The Financial Times has reported that a US trade official said that the higher tariffs on $200bn of Chinese goods would apply to products exported from the Asian nation starting on Friday and not goods that are already in transit.
- "The clarification from the Trump administration on Wednesday offers US and Chinese negotiators a window of two to four extra weeks to reach a deal before the bulk of the pain from the higher tariffs directly hits US consumers and businesses, based on shipping times between the countries."
This is good news for U.S. businesses that were fearing a hefty bill on goods in transit and it gives the trade negotiators time to resolve the issues at hand before businesses are contracted into hiked tariffed deals that could otherwise be avoided by arranging other sources of supply.
"Liu He, China’s vice-premier, is due in Washington on Thursday for talks with US officials in a bid to rescue faltering negotiations to end the trade war between the countries. US officials have accused Chinese officials of “reneging” on their pledges in the talks, triggering fears that they could collapse entirely. China has vowed to retaliate against the US if it moves ahead with the higher tariffs."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.