US President Trump signed a trade agreement with China that is expected to boost exports from US farmers and manufacturers and is aimed at lowering tensions in a long-running dispute between the economic powers.
Vice Premier Liu He, Beijing’s chief envoy in talks with Washington over their tariff war, will sign phase one of the trade deal which includes China buying more American farm goods.
China's retaliatory tariffs were meant to target goods ranging from corn and wheat to US-made vehicles and auto parts.
The United States has threatened to impose tariffs on French goods in response to a law passed in the French parliament taxing American digital giants.
Tariffs come amid an ongoing trade war between the US and China and could risk destabilising the global economy further.
Also boosting investor sentiments were comments from China that the Washington and Beijing held discussions on trade overnight and would talk again the next two weeks.
The yuan has now weakened around 1.5 percent since US President Donald Trump threatened last Thursday to impose more tariffs on Chinese goods from September 1.
The decision comes two months after US President Donald Trump agreed to lift tariffs on steel and aluminum from Mexico and Canada after the three nations agreed on a revised North American free trade pact.
The US-China trade war is already having a negative impact on the global economy. If Donald Trump and Xi Jinping cannot agree to new terms at the G20 Summit, it will affect everyone.
The new duties take effect from Sunday, a government notification said, in the latest trade row since US President Donald Trump took office in 2017 vowing to act against countries with which Washington has a large trade deficit.
Beijing's move hits $60 billion worth of US goods with new punitive tariffs ranging from five to 25 percent, and comes in retaliation for Washington raising punitive tariffs on $200 billion in Chinese goods to 25 percent.
Duties levied on aforementioned US products will be reduced from $521.2 million to $260.6 million, trade minister Ruhsar Pekcan says.
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