China scraps some USA tariffs ahead of trade talks

China scraps some USA tariffs ahead of trade talks

The US President said the United States had agreed to delay increasing tariffs on $250 billion worth of Chinese imports from October 1 to October 15. The increase will raise the tariffs from 25% to 30%, the Washington Post reports.

Asked whether the purchases were part of a deal to relax US sanctions against Chinese tech giant Huawei, Gao said, "I don't know that such negotiating conditions exist".

Some analysts said that the move was a friendly gesture but did not signify the Chinese regime's willingness to reach a deal.

The moves signal an easing of tensions between the two economic superpowers ahead of a much-anticipated meeting of top-level negotiators next month. "It's something we would consider I guess", he said.

Trump administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some USA tariffs for the first time in exchange for Chinese commitments on intellectual property and agricultural purchases, according to five people familiar with the matter. Large agricultural product purchases are a key US stipulation for a trade deal, but the two sides remain far apart on other issues.

The Wall Street Journal reported Thursday morning that China was looking to narrow the scope of trade negotiations to trade matters first and national security issues afterward. Exact dates for the meetings have not been released.

Moody's projects that USA tariffs on Chinese goods will cost United States businesses and consumers $100bn next year.

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Beijing in July offered to exempt five private crushers from import tariffs on USA beans arriving by the end of the year, but very few deals took place before buying was suspended.

The escalating trade war between the two countries has led to duties on billions of dollars in goods.

The slight reprieve may be little comfort to American businesses that have had to struggle with trade uncertainties. China wants the remove all extra tariffs, and the USA has long sought concessions on intellectual property and state-subsidies for industry that Beijing has been unwilling to give. That means the items will not be subject to additional tariffs imposed by China on US products as countermeasures to US Section 301 measures.

"China is eating the tariffs", he tweeted Friday, repeating his claim that higher duties mean Washington is collecting billions of dollars from the Asian nation, without passing costs on to USA consumers.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

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

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