China to lift punitive tariffs on U.S. soybeans, pork

China to lift punitive tariffs on U.S. soybeans, pork

China to lift punitive tariffs on U.S. soybeans, pork

The trade war is impacting the global economy.

What makes the situation even more unpredictable is that since the trade talks started between the U.S. and China in February a year ago, there have been 12 rounds of consultations, and the United States has backtracked on its commitments six times.

On Wednesday, Beijing and Washington both made concessions on planned tariffs, helping lift global stocks as well as China's yuan currency.

"I'd rather get the whole deal done", he said, but noted analysts have been discussing the possibility of an interim deal "meaning we'll do pieces of it, the easy ones first".

The trade war slashed exports to China, formerly the No. 1 customer, to $7.5 billion this year, one third of the volume before the nations imposed tit-for-tat tariffs on each other.

Beijing has said it would work on exempting some USA products from tariffs if they are not easily substituted from elsewhere.

The Wall Street Journal reported that China was seeking to narrow the scope of negotiations to trade matters by excluding national security issues.

Intellectual Property Exact details of a possible deal, like what specific commodities and how much China will buy and when, still need to be worked out.

Private buyers from China have started making price inquiries for USA soybean cargoes in November and December, according to people with knowledge of the matter. Duties were raised an additional 5% this month.

According to experts and media sources, the biggest difference between the latest round of levies and the previous ones is that the new tariffs will have a much greater impact on U.S. consumers, something that Trump refuses to recognize.

With a huge market, China is a promising destination for high-quality U.S. agricultural products.

United States farmers have had to put much of their soya bean crop in storage.

Not even the dire warnings of former US Treasury Secretary Lawrence Summers, and US Federal Reserve Chairman Jerome Powell have deterred President Donald Trump from his present course, says the writer. Moreover, major US 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.

Taken together, the measures pale in comparison to the oncoming hit from US tariff increases still in the pipeline for October and December, the fruit of a rapid escalation in tensions between the two sides last month. "(China) hopes both sides would continue to meet each other half way and adopt concrete actions to create favourable conditions for negotiations", Gao said.

The world's two biggest economies are fighting over Beijing's ambitions to make China a world leader in advanced technologies such as artificial intelligence and robotics. The exemption, which covers two lists with 16 categories of goods, will be valid from September 17, 2019 to September 16, 2020, the China's Customs Tariff Commission of the State Council said in a statement.

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