China Waives Tariffs on Some U.S. Goods; Denies Trump's Claims of Ongoing Talks

 

China Waives Tariffs on Some U.S. Goods; Denies Trump's Claims of Ongoing Talks

On Friday, China announced exemptions for certain U.S. imports from its steep tariffs, indicating a potential easing of the trade war. The exemptions include some U.S.-made pharmaceuticals, which will enter China without the 125% duties imposed in response to Trump's tariffs on U.S. imports.

Additionally, a circulating list of 131 product categories under consideration for exemptions includes vaccines, chemicals, and jet engines, although this has not been confirmed by China publicly. Trump’s administration has hinted at a desire to de-escalate tensions, with Trump claiming to TIME magazine that ongoing talks were happening and that Chinese President Xi Jinping had called him.

See also:In First 100 Days, Trump Orders Migrants to Leave, Ending Key Protections.

However, the Chinese Embassy in Washington quickly denied that any negotiations were occurring, stating, “China and the U.S. are NOT having any consultation or negotiation on tariffs. The U.S. should stop creating confusion.”

Trump has also implemented targeted tariffs on numerous other countries, temporarily suspending some until July 9, prompting U.S. trading partners to seek individual trade agreements quickly. He suggested that a deal with Japan is imminent and could serve as a test case for similar agreements, anticipating a potential announcement at the G7 summit in June.

While Trump claimed to have made "200 deals" set to be completed soon, economists warn that his tariffs will likely raise consumer prices and heighten recession risks. In addition to industry-specific tariffs, Trump has imposed a blanket 10% tariff on various imports and higher duties on steel, aluminum, and autos.

As the market reacted to signs of trade war relief, European and Asian stocks saw gains and the dollar showed signs of recovery, though Wall Street's main indexes opened slightly lower.