China says deal with U.S. for phased roll back of tariffs
November 8, 2019 - The U.S. and China have agreed to roll back tariffs on each other’s goods in stages, as negotiations continue to avoid planned tariffs on $156 billion of Chinese consumer goods due in December.
Officials are discussing rolling back 15 per cent levies on $112bn of Chinese goods -- including imports of clothing, appliances, and flatscreen monitors -- imposed in September to secure a ceasefire in President Donald Trumps trade war with China. Washington has already suspended a planned increase in tariffs on $250bn of goods from 25 per cent to 30 per cent that was due to take effect on October 15.
U.S. trade with China continued to fall in October amid the escalating dispute. Data released Friday showed U.S. exports to China at $9.4 billion and imports down at $35.8 billion. The trade deficit with China contracted in the month to $26.4 billion from $31.6 billion in September.
The two sides continue to negotiate over where and when a “Phase One” deal would be signed, Tommy Xie, an economist at Oversea-Chinese Banking Corp., told Bloomberg.
“The question right now is what the two sides have agreed on -- the market’s focus has shifted to how the U.S. may react to China’s tariff remarks tonight or in coming days,” said Xie.
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