China exempts some American imports from its tariffs of 125 percent on Friday, according to companies, although China soon dropped US President Donald Trump’s assertion that negotiations between the two countries were ongoing.
In recent days, the Trump administration has indicated that it is looking to cancel the unification of the confrontation between the two largest economies in the world, which has so far been freezing a lot of trade between them and fears of global recession.
“As a Quid-PROO step, it can provide a possible way to cancel tensions,” said Alfredo Monterfatter Hilo, a great advisor to the Chinese Center at the Conference Council, a thinking center.
But he warned: “It is clear that the United States or China wants to be the first to communicate with a deal.”
Trump told reporters on Friday that he spoke to Chinese President Xi Jinping “several times”, but he did not say when the two leaders spoke the last time or what topics they discussed.
This comes shortly after Trump told Time magazine in an interview that the Chinese president had contacted him.
“It has been summoned. I don’t think this is a sign of weakness on his behalf,” Trump I told the magazine.
Beijing has so far opposed the United States’ description of talks – the Chinese embassy said again on Friday that there were no talks between the two countries, adding in a statement that the United States should “stop creating confusion.” Also, China did not publicly communicate with any exemptions.
The American -Chinese trade war is in full swing, as none of the two sides showed signs of retreat. Andrew Zhang explains how China is placed to accommodate the trauma of American definitions and what this global economic turmoil in its position in the global order. Pictures provided by Getty Images, Canadian press and Reuters.
A statement on Friday, issued by the Political Bureau, the Elite Decisions of the Communist Party, focused on efforts to maintain stability at home by supporting companies and workers most affected by the customs tariff.
Readings, which followed the usual monthly meeting of epidemiological policy, showed that Beijing was also ready to decrease and fight a commercial war of attrition if necessary to the superiority of Washington in the pain of the permanent trade war.
The Ministry of Commerce Business Group collects lists of elements that can be exempt from customs tariffs and asks companies to submit their own requests, according to a person who is aware of this awareness.
The ministry said on Thursday that it had held a meeting with more than 80 foreign companies and business rooms in China to discuss the impact of the American tariff on investment and operation of foreign companies.
“The Chinese government, for example, asks our companies about the type of things you import to China from the United States that you cannot find anywhere else, and thus will close your supply chain.”
Hart added that some member pharmaceutical companies reported their ability to import medicines to China without tariffs. It was believed that the exemptions were for drugs, not at the level of industry.
The CEO of French aircraft engines, Safran, said on Friday that he was informed the night before that China had granted tariff exemptions on a “certain number of flights” including engines and landing equipment.
Customs tariff exemptions can be seen by Beijing to reduce the cost of companies in China and overcome American exports at a time when the Trump administration has shown signs of the desire to contract a deal with Beijing.
China reaches the United States, where it hurts by imposing a 34 percent mutual tariff on imports and restrictions on rare major metals. In response, US President Donald Trump threatens an additional 50 percent tariff if China fails to withdraw its measures. Andrew Zhang explains the escalation of the trade war between the world’s largest economists and the potential impact of China’s revenge.
It was a list of 131 categories of products that are said to be in consideration of customs tariff exemptions revolving on Chinese social media platforms and between some companies and commercial groups on Friday. Reuters could not check the list, which included elements ranging from vaccines and chemicals to jet engines.
Huatai Securities said the list corresponds to 45 billion dollars from China’s $ 45 billion imports to China last year.
The Chinese Customs Agency and the Ministry of Commerce did not respond to suspension requests. The Chinese Foreign Ministry said it is not aware of the plans to exempt the tariffs, as it re -directed inquiries to the “relevant authorities.”
Permanent battle
While Washington said that the commercial confrontation with China could not be economically defended and has already offered tariff exemptions on some electronic goods, China has repeatedly said it is ready to fight until the end unless the United States raises the 145 percent tariffs.
But the Chinese economy is directed to the trade war with high unemployment, the pressure of shrinkage and increased anxiety that the accumulation of exports that are not sold may pay domestic prices even.
While China ran a trillion dollar trade surplus in 2024, it also depends on the United States to obtain major imports, including the petrochemical ethane needed to make plastic and some medications.
Large pharmaceutical companies including ASTRAZENECA and GSK have at least one manufacturing site in the United States for drugs sold in China, according to Chinese government data.
The main ethane treatments have already sought tariff exemptions from Beijing because the United States is the only resource.
Trump connects possible deals
Trump told the White House correspondents that he was very close to a deal with Japan. Analysts are seen as a “test case” of other bilateral trade agreements, although the conversations may be difficult. Some expect Prime Minister Shigro Ishiba and Trump to announce an agreement when they meet at the Group 7 summit in Canada in June.
Trump told Time magazine separately that he had “200 deals” that would be completed within three to four weeks, although he refused to provide details. He said he considered it a “complete victory” if the definitions are still from 20 percent to 50 percent a year from now.
The US Trade Actor Office said it had a fruitful meeting with South Korea on Friday.
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