The Chinese Commerce Ministry responded Thursday morning saying that it welcomes a delay in USA tariffs on Chinese goods.
"At the request of the Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th", Trump tweeted.
China reduced purchases of US farm products in August, after Trump vowed to impose new tariffs on around $300 billion of Chinese goods, blaming Beijing for not having fufilled a promise to buy large volumes of USA farm products and abruptly dimming prospects of a trade deal.
China's decision to exempt some U.S. goods was a "big move" by Beijing and a positive gesture before trade negotiators from both countries meet in Washington, Donald Trump told reporters at the White House.
The apparent cooling of the trade war couldn't come too soon for the United States, which has seen markets slump dramatically since the two countries started trading tariff hikes in earnest again last month.More news: Mugabe's body heads back to divided Zimbabwe for burial
But in the statement, the commission said it was also considering further exemptions.
"China wants to claim the moral high ground before the October talks and to send a message of goodwill", sYao Xinchao, professor of global trade at the University of worldwide Business and Economics in Beijing, told the Washington Post.
The new data comes from Tariffs Hurt the Heartland, the coalition AEM joined previous year along with more than 150 associations representing every sector of the USA economy.
Indeed, the exempted list pales in comparison to over 5,000 types of USA products that are already subject to China's additional tariffs.
Analysts say that with its duties on soybeans and US-made cars, China is taking aim at a key political support base of Donald Trump, mainly the factories and farms across the Midwest and South at a time of receding momentum in the world's top economy.More news: Scottish Court Says Johnson's Suspension Of U.K. Parliament Is Illegal
Speaking at a weekly news briefing in Beijing, Chinese Commerce Ministry spokesman Gao Feng said China welcomed the USA move. The exemptions, effective from September 17 to September 16 2020, will cover 16 categories of products worth about US$1.65 billion, according to Bloomberg calculations based on China's 2018 trade data. Exports to the US were off 16% while imports were off 22%.
The Chinese economy is in a major slump.
The South China Morning Post reported, citing an unidentified source, that China was expected to buy more agricultural products in hopes of a better trade deal with the United States.
Senior White House adviser Peter Navarro this week urged investors, businesses and the public to be patient about the trade dispute.More news: Trump says FDA will ban flavored e-cigarettes to combat teen vaping