China US farm cancellation dashes trade breakthrough hope

Clay Curtis
September 21, 2019

President Donald Trump told reporters on Friday the United States is making a lot of progress with China, as two of the world's biggest economies work toward resolving their protracted trade dispute. But in August, Trump said he would ratchet up tariffs on Chinese imports; then last week he delayed an increase scheduled for October 1. "We've taken in many, many billions of dollars of tariffs".

"Deals have got to be a good deals, deals have got to be sustainable deals and one of the things we have seen is Australia benefits greatly from the economic growth of China", he said.

The world's two largest economies have been locked in a bruising trade war since Mr. Trump in March previous year imposed tariff hikes of up to 25 % on $250 billion of Chinese goods. His comments on Friday came just hours after the White House said it would temporarily spare more than 400 Chinese products from tariffs. Trump has complained that he almost had a trade deal with China several months ago, but Chinese officials have disputed this, saying key issues have not been resolved. "I'm not looking for a partial deal, I'm looking for a complete deal".

A new survey from the Institute for Supply Management showed that factory activity shrank in August for the first time in three years. Another report from IHS Markit confirmed the findings, which showed the weakest manufacturing activity in almost 10 years.

Other products excluded from the tariffs are Christmas tree lights, certain skateboards and electric motorcycles, parts of pool vacuums and pet water fountains.

India cuts corporate tax rates
Meaning, effective tax rate for new manufacturing companies will be 17.01 per cent inclusive of all surcharge and cess. GST Council cuts tax on hotel room tariffs of ₹1,000 to ₹7,500/night to 12%; those above ₹7,500 to 18%.

And as companies try to dodge the effects of Trump's tariffs, Bown said, the exclusions could sow further divisions within the business community. "Deals have got to be good deals, deals have got to be sustainable deals".

But US President Donald Trump made clear on Friday that purchases would not be enough for him to end his punitive tariffs. "They're holding out hope that theirs is the one product that is exempt".

The exemptions were assigned in three different sets. Another set is based on the tariffs that took effect on August 23, 2018, of $16 billion worth of goods, which will mature one year from Friday.

The last set of exclusions was based on tariffs on $34bn-worth of goods that took effect 6 July of 2018, which would similarly also expire in a year's time.

The United States is asking that China substantially increase purchases of American soybeans and other farm commodities, a person with knowledge of the planned discussions told Reuters. The tariffs were scheduled to take effect on October 1, now moved to October 15. This will be due in part to the tariffs China has placed on some U.S. imports, but also the general slowing of the Chinese economy with possibly some currency effect too.

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