Donald Trump, the US President has delayed the tariff hike which has been planned as a goodwill gesture on Chinese products worth $250 billion (£202.8 billion).
Mr Trump informed through a tweet that there will be an increase of 5% to the duties that were slated for 1ct October is going to be postponed for another couple of weeks.
According to him, China requested the delay and the move were also followed by Beijing to scrap off some of the US tariffs.
Fresh talks are slated to happen between the two countries so that the trade dispute that has been running for a long time be resolved.
In the previous month, it was decided by the US to increase the rate of tariffs for all Chinese products, which includes increasing the tax by 25% on Chinese imports worth $250 billion to 30%.
Mr Trump said on Wednesday that he was requested by the Vice Premier of China, Liu so that the upcoming increase in tariff be postponed starting from 1st October as it clashes with the date for the People’s Republic of China’s anniversary.
Earlier, a list was released by China in which US imports, 16 in number will get tariff exemption which includes animal feed and drugs for anti-cancer.
Hefty taxes will be levied upon goods that include major exports from the US to China like soybeans, pork, and cars made in America.
Amidst growing tensions, the largest economies of the world have locked horns in a trade war that has been bruising from the last year that has weighed heavily on the world economy and has dented businesses.
In the past few months, there has been an escalation of tensions and it was said by Washington that all the Chinese imports would be targeted that are coming to the US with fresh duties by the end of this year.
Negotiation on the table is on the cards as both sides agree to do so in the backdrop of the turnout of events.
Meetings on preliminary discussions are slated to happen by the end of this month that is scheduled in Washington as US secretary for treasury Steven Mnuchin and Robert Lighthizer meet up with Mr Liu from China later in October.
But still, it has been argued by some analysts that the latest gestures on the ground between the two countries’ US and China failed to bring a resolution closer to the ongoing row over trade.
A broad settlement is not on the cards according to Gary Hufbauer from the Peterson Institute for International Economics.
The continuation and imposition of tariff and rhetoric that is very hostile are carried out by Beijing throughout the year 2020. Trump will get a lot of flak for these from both the Republicans and Democrats as he cannot back down without being criticized.