March 5, 2019 11:15 AM, EST

US Indefinitely Delays Increased Tariffs on Chinese Goods

TariffQilai Shen/Bloomberg News

The United States has confirmed the country 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.

Formalizing a plan President Donald Trump announced last week, the U.S. 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% 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%, according to the statement.

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