US confirms it's delaying China tariff increase 'until further notice'

The US and China are said to be close to a trade deal that could lift most or all US tariffs.
The US and China are said to be close to a trade deal that could lift most or all US tariffs.PHOTO: AFP

DUBAI (BLOOMBERG) - The United States has confirmed it is postponing "until further notice" a scheduled tariff increase on Chinese goods, the latest sign that the world's two largest economies could be headed toward a de-escalation of their trade dispute.

Formalising a plan President Donald Trump announced last week, the US Trade Representative's office published a statement in the Federal Register stating it was "postponing the date on which the rate of the additional duties will increase to 25 per cent for the products of China covered by the September 2018 Action in this investigation."

The new tariffs had been set to take effect March 1, but now the rate will remain at 10 per cent, according to the statement.

The US and China are said to be close to a trade deal that could lift most or all US tariffs as long as Beijing follows through on pledges ranging from better protecting intellectual-property rights to buying a significant amount of American products.