China lifts tariffs on some U.S. products in modest olive branch to White House

Cancer drugs, shrimp meal among goods receiving exemption

BEIJING >> Beijing extended a modest olive branch to President Donald Trump on Wednesday amid the continuing trade war between the United States and China, publishing a short list of products to be spared from retaliatory tariffs on U.S.made goods.

The list did not include major items like soybeans and other agricultural goods that the Trump administration would most likely want to see excluded from such tariffs before agreeing to a trade deal.

Cancer drugs, lubricants, pesticides and shrimp meal were among the products that will be exempt when tariffs are imposed on a host of U.S. goods next week, China’s Ministry of Finance said in a statement on its website. China had threatened to place tariffs on many of the goods last year as the trade war began to heat up.

The products covered by the announcement will not face tariffs for a year starting next Tuesday, and tariffs already imposed on the products will be refunded, the ministry said, adding that additional exemptions would be announced in the coming weeks.

The announcement came as China’s top trade negotiator, Liu He, and senior Trump administration officials prepare to meet next month in Washington. Despite the revival of talks, resolving the trade dispute will probably be difficult, given Trump’s vow to raise tariffs on $250 billion in Chinese goods, including cars and aircraft parts, to 30% from 25% on Oct. 1.

To reach a deal, the Trump administration has indicated that China would have to take steps to de-escalate trade tensions. Beijing’s announcement Wednesday could be interpreted as such a step.

“We hope that the U.S. can show sincerity and good faith, and work together with China to create favorable conditions and atmosphere to properly resolve the trade issues through negotiations based on equality and mutual respect,” Hua Chunying, a spokeswoman for China’s foreign ministry, said at a news conference Wednesday.

Asked for more details about the decision to spare some U.S. products, Hua said it would be up to China’s finance ministry to elaborate.

Trump responded to the announcement with a

morning Twitter post that suggested he believed the move showed Beijing’s resolve weakening.

“China suspends Tariffs on some U.S. products,” he wrote. “Being hit very hard, supply chains breaking up as many companies move, or look to move, to other countries. Much more expensive to China than originally thought.”

Negotiators for the two countries hope to reach a relatively modest deal in the coming weeks that would have China buy more U.S. farm products in exchange for the United States lifting some restrictions on Chinese telecommunications giant Huawei. Such an agreement could help lay the groundwork for a broader deal.

Trade talks broke down in May, and a short time later the White House put Huawei on a blacklist that would block its access to microchips and other critical technology made by U.S. companies. Since then, China and the United States have traded barbs and put tit-for-tat tariffs on billions of dollars’ worth of goods.