China says 'making enquiries' on buying USA farm products

China says 'making enquiries' on buying USA farm products

US President Donald Trump said Wednesday the United States will delay increasing tariffs on $250 billion (€227 billion euros) worth of Chinese imports by two weeks "as a gesture of good will".

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.

Trump said the postponement came "at the request of the Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary".

The announcement came after China said earlier in the day that it would spare some USA products from punitive new tariffs, an apparent conciliatory move ahead of high-level.

The exemption will take effect on September 17, the ministry said in a statement.

Beijing announced it was temporarily exempting some United States exports from tariff increases, a gesture that lifted equities markets long buffeted by the ups and downs in the conflict now entering its second year.

The American Chamber of Commerce in Shanghai said just 47 percent said they expected to increase their investments in China in 2019 - down from 62 per cent a year ago - while three-quarters of businesses surveyed said they opposed the use of punitive tariffs by the United States to force China into a trade deal.

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The world's largest economies have been locked in a bruising trade fight for the past year that has hurt businesses and weighed on the global economy.

The gestures may ease tensions ahead of the negotiations, but some analysts don't see it as a signal that both sides are readying a deal. Moreover, major USA imports, such as soybeans and pork, are still subject to hefty additional duties, as China has ramped up imports from Brazil and other supplying countries.

Instead, Mr Trump says, that will be delayed until October 15.

AUD/USD has climbed almost 3% since bottoming earlier this month. Beijing said in May that it would start a waiver programme, amid growing worries over the cost of the protracted trade war on its already slowing economy. The U.S. Trade Representative's Office has announced six rounds of exclusions for the punitive tariffs on US$34 billion in Chinese goods since December.

The trade war between the US and China is showing signs of easing.

Reducing America's soaring trade deficit with China has always been a principal aim in Trump's trade battle with Beijing, which he also accuses of stealing American technology and unfairly intervening in markets.

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