China welcomes Trump's 'goodwill' act to delay tariffs ahead of trade talks

DJIA Dow Jones Index Price Chart Stock Market Gains on US China Trade War News Tariff Delay

Pharmaceuticals and lubricant oil are among exclusions to levies on imports announced by the Ministry of Finance on its website on Wednesday.

The exemption will take effect on September 17 and be valid for a year through to September 16, 2020, it said.

The series of tariffs on a large number of products the USA and China buy from each other has rattled investors and made consumers uneasy with the outlook of higher prices. The Chinese government began accepting applications for tariff exemptions in May, but it is the first time they have stated which products will be excluded. President Trump, who has threatened to raise those tariffs to 30%, has long held that trade wars "are easy to win" but talks with Beijing have proved more complicated than he anticipated.

Chinese stocks edged down and the yuan pared earlier gains after the announcement.

The trade war between the US and China is showing signs of easing.

US-China trade tensions intensified earlier this month when Washington and Beijing imposed further tariffs on each other.

A top Chinese official said Thursday that companies in the country have been inquiring about the prices for USA soybeans and pork in what could be a positive sign during trade negotiations. Both nations will increase some of them again on December 15 unless there is a breakthrough.

In a tweet, Mr Trump said a 5% increase to duties scheduled for 1 October will be postponed for two weeks.

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.

Applications for the second tranche of exclusions started on September 2 and will close on October 18, China's finance ministry said earlier on its website.

Indeed, the exempted list pales in comparison to over 5,000 types of U.S. products that are already subject to China's additional tariffs.

-With assistance from Jinshan Hong and Natalie Lung.

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