China exempted some US imports from its steep tariffs in a sign yesterday that the trade war between the two countries could be easing, though China quickly knocked down US President Donald Trump’s assertion that negotiations were underway.
Business groups said China has allowed some US-made pharmaceuticals to enter the country without paying the 125 per cent duties that Beijing imposed earlier this month in response to Trump’s 145pc tariffs on US imports.
Also, a list of 131 product categories said to be under consideration for exemptions was circulating among some businesses and trade groups. Reuters could not verify the list, which includes vaccines, chemicals and jet engines, and China has not yet communicated publicly on the issue. Trump’s administration has in recent days signalled it is looking to de-escalate the confrontation between the world’s two largest economies, and Trump himself told TIME magazine that talks were taking place and that Chinese President Xi Jinping had called him.
“I don’t think it’s a sign of weakness on his behalf,” he said.
China denied that discussions were happening.
“China and the US are NOT having any consultation or negotiation on #tariffs. The US should stop creating confusion,” the Chinese Embassy in Washington wrote on social media. In addition to the steep tariffs on China, Trump has announced targeted tariffs on dozens of other countries, which he has suspended until July 9. That has set off a scramble among US trading partners to strike individual trade deals with Washington before the deadline – a tall order, given that past trade deals have typically taken years to negotiate.
Trump separately told TIME that he had made “200 deals” that would be completed within three to four weeks. He said he would consider it a “total victory” if tariffs were still 20pc to 50pc a year from now. The office of the US Trade Representative said it had held a productive meeting with South Korea yesterday.
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