SINGAPORE (Mar 4): Politics, not economics, seem to be the primary driver of the financial markets lately. The US will be delaying its increase in tariffs on Chinese goods, announced by US President Donald Trump on Feb 25. The trade war truce between the US and China was scheduled to end on March 1. Trump had initially said he would immediately increase tariffs on some Chinese goods after that date.
Trump tweeted, “I am pleased to report that the US has made substantial progress in our trade talks with China on important structural issues, including intellectual property protection, technology transfer, agriculture, services, currency and many other issues.
“As a result of these very productive talks, I will be delaying the US increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for US & China!”