Please ensure Javascript is enabled for purposes of website accessibility
Hopes Rise That Lifting Tariffs Could Allow US-China Accord
gvw_ap_news
By Associated Press
Published 6 years ago on
November 8, 2019

Share

BEIJING — Prospects appear to have brightened for a preliminary breakthrough in the U.S.-China trade war after the two sides agreed to reduce some punitive tariffs on each other’s goods as part of an initial agreement.
A Chinese spokesman announced the development Thursday as talks on ending the trade war progressed — a development that triggered a rally in U.S. stock markets.

“If the two sides achieve a ‘Phase 1’ agreement, then based on the content of that agreement, tariffs already increased should be canceled at the same time and by the same rate.” — Chinese Ministry of Commerce spokesman Gao Feng
The agreement came during talks aimed at working out details of a “Phase 1” deal that was announced Oct. 12. Financial markets had been rattled by reports that China was pushing for tariffs to be lifted, which posed the prospect of a breakdown in talks.
Negotiators agreed to a “phased cancellation” of tariff hikes if talks progress, said a Commerce Ministry spokesman, Gao Feng.
“If the two sides achieve a ‘Phase 1’ agreement, then based on the content of that agreement, tariffs already increased should be canceled at the same time and by the same rate,” Gao said at a news briefing.
As for the size of reductions, Gao said that would depend on the agreement.

President Donald Trump Agreed to Postpone Tariff Hike

“For almost two years now, the U.S./China trade tussle has posed the biggest headwind to global growth,” BMO Economics said in a research note. “But with promising signs of progress on the trade front, a shift in global central banks to easing … and mostly better-than-expected corporate profits, U.S. stocks” are reaching all-time highs.”
On Wall Street, stocks pushed toward another round of records in the wake of the encouraging report from Beijing. The Dow Jones Industrial Average was up nearly 200 points in late-afternoon trading.
Governments of the two biggest global economies have raised tariffs on billions of dollars of each other’s goods in the fight over China’s trade surplus and technology ambitions. That weighs on trade worldwide and threatens to depress corporate earnings and global economic growth, which is already showing signs of slowing.
The Oct. 12 agreement was modest and details have yet to be put on paper but it was welcomed as a sign of progress toward ending the trade war.
President Donald Trump agreed to postpone a planned tariff hike while lower-level officials hammered out details.
Trump said China agreed to buy up to $50 billion of American farm goods. Beijing has yet to confirm the scale of its commitment.
News reports said Beijing wants 15% tariffs imposed in September on $125 billion of Chinese imports removed before it will make a formal commitment.

Major Disagreements Remain

There had been no indication whether Trump might agree, which raised the possibility of another breakdown in negotiations.

China’s imports of American soybeans and other goods tumbled 26.4% in the first nine months of this year following tariff hikes and orders to importers to find other suppliers.
China’s imports of American soybeans and other goods tumbled 26.4% in the first nine months of this year following tariff hikes and orders to importers to find other suppliers.
The Oct. 12 agreement helped to ease financial market jitters, but the two sides have yet to report progress on major disagreements over technology and other irritants following 13 rounds of talks.
Trump and Xi were due to meet at this month’s gathering of Asia-Pacific leaders in Chile but that event was canceled due to protests there.
That dampened hopes a face-to-face meeting might produce progress. But U.S. officials say the two governments are looking for a different location.
U.S. Commerce Secretary Wilbur Ross said this week any “Phase 1” agreement would be general and cover trade in specific areas such as soybeans and liquefied natural gas.
More complicated issues would be tackled in later negotiations, Ross said. He gave no indication whether rolling back tariffs was a possibility at this stage.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

California School Awards Dinner at Disneyland Comes With Hefty Price Tag

DON'T MISS

Fresno Police Release Video of Officer-Involved Shooting

DON'T MISS

Hamas Says It Is Still Reviewing a US Proposal for a Gaza Ceasefire

DON'T MISS

1 in 4 US Children Have Parents With Substance Use Disorder, Study Finds

DON'T MISS

Oreo Maker Mondelez Sues Aldi, Alleging Grocery Chain Copies Its Packaging to Confuse Customers

DON'T MISS

FAA Demands an Accident Investigation Into SpaceX’s Latest Out-of-Control Starship Flight

DON'T MISS

In Marseille, a Shadow Becomes Art in Banksy’s Latest Street Mural

DON'T MISS

Dozens Sickened in Expanding Salmonella Outbreak Linked to Recalled Cucumbers

DON'T MISS

Ray Appleton Set to Resume His KMJ Show. E Curtis Johnson Retires

DON'T MISS

Fresno Unified Communications Boss on Leave After AI-Generated FTA Dossier Debacle

UP NEXT

In Marseille, a Shadow Becomes Art in Banksy’s Latest Street Mural

UP NEXT

Dozens Sickened in Expanding Salmonella Outbreak Linked to Recalled Cucumbers

UP NEXT

Speaker Johnson Raises Campaign Money in Fresno

UP NEXT

UN May Cut Staff by 20%, Internal Memo Says

UP NEXT

Netanyahu Says Israel Accepts Witkoff’s New Gaza Truce Proposal, Media Report

UP NEXT

Business Insider Cuts 21% of Workforce, Memo Shows

UP NEXT

Harvard Agrees to Relinquish Early Photos of Slaves, Ending a Long Legal Battle

UP NEXT

Silence on E. Coli Outbreak Highlights How Trump Team’s Changes Undermine Food Safety

UP NEXT

Food Trucks in Gaza Raided, Underscoring Aid Distribution Problems

UP NEXT

US and Russia Clash in Public as the Ukraine War Heats Up

1 in 4 US Children Have Parents With Substance Use Disorder, Study Finds

2 hours ago

Oreo Maker Mondelez Sues Aldi, Alleging Grocery Chain Copies Its Packaging to Confuse Customers

2 hours ago

FAA Demands an Accident Investigation Into SpaceX’s Latest Out-of-Control Starship Flight

2 hours ago

In Marseille, a Shadow Becomes Art in Banksy’s Latest Street Mural

2 hours ago

Dozens Sickened in Expanding Salmonella Outbreak Linked to Recalled Cucumbers

2 hours ago

Ray Appleton Set to Resume His KMJ Show. E Curtis Johnson Retires

2 hours ago

Fresno Unified Communications Boss on Leave After AI-Generated FTA Dossier Debacle

3 hours ago

Visalia Teen Takes Second Place in Dramatic Scripps National Spelling Bee Finals

3 hours ago

Newsom Tussles With Local Officials Over Homelessness

4 hours ago

Fresno Police Arrest Two Women Suspected in Targeted Shootings

4 hours ago

California School Awards Dinner at Disneyland Comes With Hefty Price Tag

California schools that have significantly improved student achievement will be honored in a ceremony hosted by the California Department of...

1 hour ago

1 hour ago

California School Awards Dinner at Disneyland Comes With Hefty Price Tag

1 hour ago

Fresno Police Release Video of Officer-Involved Shooting

1 hour ago

Hamas Says It Is Still Reviewing a US Proposal for a Gaza Ceasefire

2 hours ago

1 in 4 US Children Have Parents With Substance Use Disorder, Study Finds

2 hours ago

Oreo Maker Mondelez Sues Aldi, Alleging Grocery Chain Copies Its Packaging to Confuse Customers

2 hours ago

FAA Demands an Accident Investigation Into SpaceX’s Latest Out-of-Control Starship Flight

2 hours ago

In Marseille, a Shadow Becomes Art in Banksy’s Latest Street Mural

2 hours ago

Dozens Sickened in Expanding Salmonella Outbreak Linked to Recalled Cucumbers

Help continue the work that gets you the news that matters most.

Search

Send this to a friend