The US and China have opted for a convenient if short-term fix for their tough trade talks, pushing back the March 1 deadline in the absence of a deal. Hitting the deadline without a mutually acceptable agreement would have led to unpleasant consequences for both sides.
Donald Trump tweeted on Sunday evening that he would delay bumping up to 25 per cent the tariffs on $200bn of Chinese goods, citing progress in negotiations and a plan to meet Xi Jinping at the US president’s Mar-a-Lago resort at an unspecified date.
The extension suits both leaders. For Mr Trump, the ability to dial up or dial down pressure on China is useful, both politically at home and in Washington’s dealings with its biggest economic rival. The US president also said his negotiators have made “substantial progress” on the structural issues that he has consistently demanded.