China exempts some US goods from tariffs

The exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in Oct

beijing — China announced its first batch of tariff exemptions for 16 types of US products, days ahead of a planned meeting between trade negotiators from the two countries to try and de-escalate their bruising tariff row.

The exemptions will apply to US goods including some anticancer drugs and lubricants, as well as the animal feed ingredients whey and fish meal, the Ministry of Finance said in a statement on Wednesday.

Beijing said in May that it would start a waiver programme, amid growing worries over the cost of the protracted trade war on its already slowing economy.

Some analysts view the move as a friendly gesture but don’t see it as a signal that both sides are readying a deal. “The exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in October but is probably more a means of supporting the economy,” ING’s

Iris Pang, ING economist

Greater China economist Iris Pang wrote in a note. “There are still many uncertainties in the coming trade talks. An exemption list of just 16 items will not change China’s stance,” she said.

Indeed, the exempted list pales in comparison to over 5,000 types of US products that are already subject to China’s additional tariffs. Moreover, major US imports, such as soybeans and pork, are still subject to hefty additional duties, as China ramped up imports from Brazil and other supplying countries.