China Mulls Relief on US Tariffs
China is considering suspending its 125% tariff on certain US imports, including medical equipment and industrial chemicals, as a way to reduce economic strain. This potential move is seen as a way to ease pressures on sectors such as healthcare and aviation that rely on US goods.
The possibility of tariff relief has lifted investor sentiment, with experts viewing it as a step toward easing trade tensions. However, a full resolution to the ongoing trade dispute remains uncertain.
US-South Korea Trade Deal Could Be Near
US Treasury Secretary Scott Bessent hinted that a trade deal with South Korea could be finalized as early as next week, praising the country’s approach. This announcement comes as US-China trade talks have stalled. China rejected US tariff concessions, demanding the complete removal of all tariffs.
According to Chinese Commerce Ministry spokesman He Yadong, the US should “thoroughly remove all unilateral tariffs” if it genuinely seeks a solution to the trade dispute. He dismissed reports of ongoing negotiations as “groundless.”
Trump’s Remarks on Ongoing Talks
President Trump confirmed that the US has been in discussions with China, though he did not specify who was involved. “It doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” Trump said during a White House briefing.
Stock Market Reaction and Future Expectations
US stock futures rose on Friday, spurred by hopes—albeit uncertain—of a de-escalation in trade tensions. On Wednesday, Bessent denied a report suggesting the White House may unilaterally cut tariffs, but emphasized that both sides must act to address “unsustainable” tariff levels.
The trade conflict between the US and China has escalated recently. China raised its duties on US imports to 125%, up from 84%, while US tariffs on Chinese goods have increased significantly, including a 125% reciprocal tariff, a 20% tariff related to the fentanyl crisis, and Section 301 tariffs ranging from 7.5% to 100%.
Other Tariff Developments
Beyond the US-China trade talks, attention is also focused on other key tariffs, exemptions, and delays. Trump is reportedly considering an exemption for some auto parts levies while suspending duties on certain consumer tech. However, he has maintained that these tariffs will eventually be implemented. Additionally, the White House has initiated a probe into truck imports, potentially setting the stage for tariffs on the sector.
The baseline 10% tariff that went into effect on April 5 remains in place for all affected imports into the US.
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