As China and the United States continue with their trade negotiations, there are more news regarding the trade war coming from both sides.
After China stated that in order for an agreement to be signed, both countries need to figure out a way to roll back some of the existing tariffs they had imposed on one another, the East Asian country made the first step and canceled some of the duties on US pork and soy. China likely expects the United States to follow suit and remove some of the tariffs on Chinese goods in a reciprocal gesture, though this has not been confirmed yet.
This action from China is a little surprising, considering the United States has done many things to antagonize China lately. The US government has publicly criticized China’s treatment of its Muslil minority population, passed a new law in favor of Hong Kong’s autonomy, and President Trump even stated it might be a good idea to postpone any possible trade deals until late in 2020.
Moreover, yesterday Donald Trump spoke favorably of the talks, stating that the two countries are making good progress in their negotiations. His remarks boosted stock markets around the world and also helped increase risk appetite among investors.
It still remains to be seen if the United States will go ahead with a new round of tariffs on China scheduled for December 15, which may sour the talks once again.
