Following moves by the U.S. and China to ease trade tensions between the 2 countries, international stocks have been, mostly, rising.
According to a statement by the Ministry of Finance on Wednesday, China publicized its first batch of tariff exclusions for 16 kinds of U.S.-based goods, such as some anti-cancer drugs, animal feed ingredients, etc.
As a response, U.S. President Donald Trump stated on Twitter how he, too, would elongate the time till new tariffs are imposed on Chinese products, by two weeks, as a good will gesture which he hopes will contribute to trade talks which haven’t yet made considerable progress.
On Thursday, a spokesperson for China’s Commerce Ministry stated how Chinese firms are looking up the expenses in purchasing U.S. based agricultural goods, such a chief imports like soybean, pork, etc.
Trump stated how increasing the tariffs on $250 billion worth of Chinese goods will move ahead from its initial date of 1st October to the 15th October. The tariffs on these goods were set to rise to 30% from 25%.
Michael Pillsbury of the Hudson Institute, who has advised the administration on China, said: “This is a response to the Chinese goodwill gesture.”
On the other hand, the trade data out of China has shown that soft international demand and tariffs are stressing on its economy.
On Wednesday, the editor of Global Times, Hu Xijin, when speaking to Bloomberg, stated how the exemptions given by China shouldn’t be taken as a concession. However, the announcement shows the increasing effect of the tariffs on the greater Chinese economy.
It has also been pointed out how the Chinese exemptions have not yet included chief products which are subject to tariffs.
On Wednesday, the head of research at Henderson Rowe, Artur Baluszynski, stated how the Chinese tariffs which actually matter are those on U.S. agricultural and manufacturing products, generated mostly in states with great support for Donald Trump. He added how they don’t see China eager to negotiate on them prior to the U.S. presidential elections kicking off.