China has taken steps to de-escalate the trade war with America, by removing tariffs from 16 types of US goods.
Beijing’s State Council announced that the items, including some chemicals, anti-cancer drugs and lubricant oils, will be exempt from its latest tariffs for a year.
However, some major US products such as soybeans were not included on the list, meaning Chinese importers must still pay a tariff.
Neil Wilson of Markets.com says China’s move has raised hopes of a breakthrough when officials meet in Washington next month.
At the very least it suggests a willingness to engage seriously in these talks. Nevertheless I think we remain a long way and even a presidential election away from a deal.
On this note, economics professor Barry Eichengreen argues that America’s central bankers must warn that the trade war is hurting the US economy.”
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