Trump extending deadline of trade tariff decision
Donald Trump’s decision to extend a deadline on additional tariffs on Chinese goods provides Xi Jinping with some temporary relief as he struggles to arrest an economic slowdown.
Trump announced the extension of the trade truce between the two nations on Sunday, tweeting that if they made further headway in negotiations, he planned to meet Xi at the Mar-a-Lago resort in Florida to end the dispute.
Trump extending China truce gives Xi breathing room on slowdown
The longer truce may provide China’s economy with a confidence boost just as tentative signs emerge that targeted stimulus measures are helping steady the economy’s deceleration. If China bows to U.S. pressure and further opens up the economy, that could also help make the world’s second-largest economy more productive, further boosting growth.
“China’s policymakers have gained some breathing room,” said Eswar Prasad, a former China expert at the International Monetary Fund who is now at Cornell University. “This could prove to be fleeting unless they frontally address overarching concerns about financial risks and lack of reform momentum.”