Donald Trump praises China's tariff exemptions as trade talks approach

  • Donald Trump praises China's tariff exemptions as trade talks approach

Donald Trump praises China's tariff exemptions as trade talks approach

The delay "shows Trump doesn't want to increase tariffs before the trade talks in early October and it creates good conditions", said Tommy Xie, economist at Oversea-Chinese Banking Singapore.

It comes a day after US President Donald Trump said he would delay a planned hike in tariffs on $250 billion worth of Chinese goods until October 15.

China reduced purchases of US farm products in August, after Trump vowed to impose new tariffs on around $300 billion of Chinese goods, blaming Beijing for not having fufilled a promise to buy large volumes of USA farm products and abruptly dimming prospects of a trade deal.

Preliminary meetings are set to take place later this month in Washington before USA treasury secretary Steven Mnuchin and trade representative Robert Lighthizer meet China's Mr Liu in October.

They said Beijing had been sounding a more "constructive" note in recent weeks over trade relations.

The items on the list are considered relatively insignificant and don't touch trade restrictions on more important goods such as pork and soya beans that have hit United States farmers.

The negotiations in early October would be the first since talks broke down in May.

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

In a sign of the pressure being felt by the Chinese economy, the central People's Bank of China said on Friday it would cut the amount of cash lenders must keep in reserve, allowing an estimated $126 billion in additional loans to businesses.

The items on the two tariff exemption lists - posted on the ministry's website - will not be subject to additional duties imposed by China on US goods "as countermeasures to US Section 301 measures", the ministry said in its statement.

Trump has long accused China of intellectual property theft and manipulating its currency to make its goods cheaper than American products on the world market.

In July alone, the USA exported about 3,000 containers, or nearly 61,000 tonnes of pork, as buyers stepped up purchases amid a huge shortfall in China that has driven prices to record levels.

China says US trade policies are aimed at trying to stifle its ability to compete.