The US government is unlikely to add new tariffs to a batch of Chinese goods valued at $160 billion, according to US Agriculture Secretary Sonny Perdue.
US President Donald Trump pushed another round of tariff increases on Chinese goods that include smartphones to December 15 earlier this year. The two sides haven’t been able to reach an agreement on a Phase One deal to end the 17-month trade war.
“We have a deadline coming up on the December 15 for another tranche of tariffs, I do not believe those will be implemented and I think we may see some backing away,” said Perdue on Monday at a conference in the US state of Indiana.
Analysts feared that Trump would make good on his threats that he was willing to wait till after the US presidential election in November 2020 to sign a trade deal.
The Organisation for Economic Co-operation and Development (OECD) stated that the ramifications of the US-China trade war has caused global economic growth to erode to Great Financial Crisis levels ten years ago.
“For the past two years, global growth outcomes and prospects have steadily deteriorated, amidst persistent policy uncertainty and weak trade and investment flows,” said Laurence Boone, OECD Chief Economist in the report on global economic growth.
The new head of the European Central Bank Christine Lagarde said last month that the global economy must stop all trade wars to sustain a healthy economy. She focused on trade wars as one of the main factors inhibiting GDP growth around the world and causing uncertainty in global value chains.
“Ongoing trade tensions and geopolitical uncertainties are contributing to a slowdown in world trade growth, which has more than halved since last year,” said Lagarde. “This has in turn depressed global growth to its lowest level since the great financial crisis.”
Analysts have been optimistic that a trade deal will be reached in the near future and White House economic adviser Larry Kudlow said both sides were staging “around-the-clock” negotiations.