President Donald Trump announced he was postponing a new hike in tariffs originally scheduled to take effect next month as a goodwill gesture to China.
Chinese trade deputies are expected to meet with their U.S. counterparts in Washington in mid-September before minister-level meetings in early October involving He, U.S. Trade Representative Robert Lighthizer, and Treasury Secretary Steven Mnuchin.
In Asia, the local stock markets responded positively to Trump’s announcement in the early hours of trading. At the time of writing, Japan’s Nikkei stock index was up 0.89 percent, South Korea’s benchmark Kospi was up 0.84 percent, and the weighted index on the Taiwan Stock Exchange edged up 0.58 percent.
In China, the Shanghai Composite Index increased slightly by 0.12 percent.
Last March, a Section 301 investigation conducted by the U.S. Trade Representative’s Office (USTR) concluded that Beijing was engaging in state-sponsored intellectual property theft and other unfair trade practices, prompting the Trump administration to announce punitive tariffs on imports from China, precipitating the current trade war.
“Trump’s comments are likely to put a little juice in the market, but it could be gone tomorrow,” said Hugh Dive, chief investment officer at Atlas Funds Management in Sydney, according to Reuters.
“Some in the market react to small changes in negotiating positions because Trump is negotiating in the open. I’m more concerned about Brexit, because there is some complacency in the EU about this,” Dive added.