China just waived import tariffs on more than a dozen US goods. It’s the first time Beijing has issued such exemptions since the US-China trade war began.
The Chinese government issued tariff exemptions on 16 products, including shrimp, fish meal and cancer treatment drugs.
Punitive duties on soybeans, the biggest U.S. export to China, and thousands of other items were left unchanged.
The United States has imposed tariffs on a wide variety of imported China goods. Tech companies such as Cree and Qorvo have suffered hits to their semiconductor businesses. And Lenovo, which is based in Morrsville, N.C. as well as Beijing, has warned the trade war will mean higher prices for some tech products.
China currently purchased 61 percent of all U.S. soybean exports and more than 30 percent of overall U.S. soybean production, according to the North Carolina Soybean Producers Association.
“The exemption could be seen as a gesture of sincerity towards the U.S. ahead of negotiations in October but is probably more a means of supporting the economy,” Iris Pang of ING said in a report.
Word that talks are going ahead has helped calm jittery financial markets. But there has been no sign of progress.
The two governments “are unlikely to reach a deal this year,” said Pang.
Chinese importers can apply for a refund of tariffs already levied on 12 of the products. Four products, including whey, are eligible for the exemption but not for refunds.
The exemptions will start September 17 and last for a year. China’s State Council Tariff Commission, which made the announcement, said it will continue to review exemption requests and announce new lists in the future.
The move comes as US and Chinese officials prepare to resume face-to-face talks in Washington in a bid to prevent further escalation in the damaging fight between the world’s top two economies. Both countries recently announced new rounds of tariffs on each other that either kicked in earlier this month or are expected to go into effect in the coming weeks.
