Economy

China announces first tariff exemptions on USA goods

China announces first tariff exemptions on USA goods

The two lists will be effective for one year from September 17, 2019 to September 16, 2020. -China relations, including trade, the chamber said in a statement.

"The exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in October but is probably more a means of supporting the economy", ING's Greater China economist Iris Pang wrote in a note.

In a tweet early Wednesday, US President Donald Trump noted the tariff exemptions, saying the trade war was proving more costly for China than previously thought.

Today's exemptions apply to the round of tariffs China imposed on USA goods starting last July in retaliation for higher US levies.

Indeed, the exempted list pales in comparison to over 5,000 types of us products that are already subject to China's additional tariffs.

The exemptions will apply to US goods including some anti-cancer drugs and lubricants, as well as the animal feed ingredients whey and fish meal, the Ministry of Finance said in a statement on its website on Wednesday. Is this a concession to the USA ahead of the October trade talks?

"These adjustments signal that China is more willing to make progress in the October trade talks, likely toward striking a "narrow" agreement that involves China buying more U.S. goods in exchange for the United States suspending further tariff hikes", Barclays analysts said in a research note.

More news: House Dems, Back from Recess, Are Expanding Their Trump-Based Investigations

Xi further complained to Abe that while the Trump administration has repeatedly criticized Beijing for supporting state-owned companies with subsidies, "the U.S.is also providing Boeing with subsidies", referring to the Chicago-based US airplane manufacturer.

Top Chinese negotiators will travel to Washington for talks in the coming weeks, and lower-level officials will also hold discussions this month.

Both sides imposed fresh tit-for-tat tariffs on Sept 1.

Beijing has hit back with tariffs ranging from 5% to 25% on United States goods.

Trump has imposed or announced penalties on about $550 billion of Chinese imports, or nearly everything the United States buys from China.

Xi also had a telephone conference with Trump on June 18, according to the Chinese Foreign Ministry, and Xi said he hoped that "the US side can treat Chinese firms in a fair manner".