Midnight deadline for two economic superpowers to reach deal means increased tariffs on $200bn of Chinese goods will come into effect
Tariffs of 25% on $200bn worth of Chinese goods have come into effect, as we passed the midnight deadline without reached by the US and China.
All eyes are on the markets to see how they react to the news.
It is less than 10 minutes until the increased tariffs come into effect, we will be watching the markets’ reaction carefully.
Earlier on Thursday, the US Customs Office revealed that goods which set off from China to the US before the midnight deadline would still be taxed at 10%, not the new 25% rate.
If you’d like to read the full memo from the US Customs and Border Protection service about the increase in tariffs to 25% that is due to come into effect on 10 May (ie. in 35 minutes), you can read it here.
Earlier, Phillip Inman reported that President Xi Jinping sent a message to Trump that he would talk to his US counterpart ahead of the deadline, though we do not know if that conversation has happened this evening.
Trump said on Thursday he had received a “beautiful letter” from Xi as negotiations on a trade deal between the two countries continued in Washington.
Asian shares inched up from two-month lows on Friday, hours ahead of the Trump administration’s plan to raise tariffs on Chinese imports, as investors waited to see if negotiators can salvage a deal and avoid a sharp escalation in the trade war, Reuters reports.
Trade talks have wrapped up for the night, but both sides have agreed to continue discussions tomorrow, the White House has confirmed in a statement:
“This evening, Ambassador Lightizer and Secretary Mnuchin met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions at USTR.”
Fears of a full-blown trade war between the US and China have escalated today as the deadline for the two superpowers to reach a deal over trade tensions fast approaches.
US president Donald Trump had threatened to impose higher tariffs (25%, rather than the 10% tariff currently in place) on $200bn worth of Chinese goods at midnight Washington time on Thursday (in about an hour) unless Beijing’s negotiators offered a compromise.