China mulls tariff cuts on U.S. goods amid trade tensions
Chinese authorities are considering suspending the 125 percent tariff on some goods imported from the United States, according to people familiar with the matter, as reported by Bloomberg. The economic toll of the trade war is particularly burdensome on certain industrial sectors.
In response to the escalation of the trade war, Beijing imposed tariffs of 125 percent on U.S. goods. While the Americans had previously announced exemptions from tariffs for smartphones, computers, and other electronic devices and components, the Chinese are now considering a similar move. Bloomberg unofficially reports that Chinese authorities are considering lifting tariffs on medical equipment and certain chemicals used in industry, such as ethane.
Bloomberg reminds us that China is the largest producer of plastics in the world. Some of its factories rely on ethane, mainly imported from the United States.
China is considering lifting selected tariffs
The same sources indicate that China also wants to remove tariffs on aircraft leasing. Chinese carriers do not own all their aircraft and pay external companies lease fees for the ability to use them. Additional tariffs could ruin their finances.
The Chinese Ministry of Finance and customs services have not commented on these reports. Bloomberg notes that it is uncertain whether the Chinese list will go beyond the scope of discussions.
China: We are not talking to the USA. Trump: Yes, we are talking
On Thursday, U.S. President Donald Trump declared that trade talks with China are ongoing. Earlier, the Chinese Foreign Ministry denied that any trade discussions were taking place with the United States and indicated that to start them, the "unilateral" tariffs imposed by Washington need to be lifted.
Foreign Ministry spokesman Guo Jiakun stated that a "tariff war initiated by the USA" is underway, and the government's position in Beijing is "consistent and clear." "We will fight, if fight we must; our doors are open, if the US wants to talk. Dialogue and negotiation must be based on equality, respect and mutual benefit," he declared.
