White House plans to increase tariffs from 10% to 25% on $200 billion of products made in China have been delayed, President Donald Trump said, citing “substantial progress” in talks between the United States and China.
In announcing the delay on Twitter, Trump did not say how long the delay would hold. The President also floated the possibility of a meeting between him and Chinese President Xi Jinping in the future to resolve trade differences between the two nations.
The increase in tariffs was set to go into effect on March 2.
The Wall St. Journal reported that China’s Xinhua News Agency also noted that “substantial progress” has been made between the two sides.
Following Trump’s statement, the National Retail Federation released a statement welcoming news of the delayed tariff increase.
“The decision to avoid a tariff hike is a positive development, and we encourage the administration to build on this momentum and reach a resolution that will eliminate uncertainty for American businesses and consumers,” said Matthew Shay, president and CEO of the NRF.
According to data released by Tariffs Hurt the Heartland – a campaign backed by NRF – recent tariffs imposed by the administration cost U.S. businesses $2.7 billion in November 2018 alone. Tariffs Hurt the Heartland also released a report prepared by Trade Partnership that found American workers would lose nearly one million U.S. jobs if tariffs on $200 billion of Chinese imports increased from 10% to 25%.