China Plans To Start Trade Talks With US, Wants To Ease Tit-For-Tat Tariff War

Beijing: China on Friday said it is assessing whether to start trade talks with the US on tariff reductions following recent approaches by Washington, a move that would possibly ease the tit-for-tit tariff war between the world’s two largest economies.

"China is making assessments as the United States has recently reached out to convey messages to China through relevant parties many times, expressing hope to engage in talks with Beijing over tariff issues," the Chinese Commerce Ministry said in a statement here.

"The tariff and trade wars were unilaterally initiated by the United States. If the US wants to negotiate, it must demonstrate sincerity, and make preparations and take concrete actions on issues such as correcting its erroneous practices and lifting the unilateral tariffs," the statement by its spokesperson said.

US President Donald Trump slapped 145 per cent tariffs on Chinese exports. Later the White House said tariffs on Chinese goods amounted to 245 per cent.

Beijing retaliated by imposing 125 per cent levies on US exports.

China has been denying any talks with the US on tariffs while Trump said talks were on and Chinese President Xi Jinping spoke to him.

The Chinese Foreign Ministry denied any such talks between the two Presidents.

Both the US and China have been steadily increasing tariffs on each other’s goods since the US raised tariffs on dozens of countries. China now faces 245 per cent taxes on exports to the US, while other countries were given a 90-day reprieve for most duties.

On April 16, China appointed a new top international negotiator after Trump said the ball is in Beijing's court to work out a deal to end the tariff deadlock.

According to a fact sheet issued on April 16, the White House said, more than 75 countries have already reached out to discuss new trade deals. As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated.

China is the only country to have retaliated with tit-for-tat levies.

For China, the US is the third largest export market. Despite China putting a brave front, there is considerable concern here about the impact of Trump’s tariffs on China’s economy, which is struggling with slowdown due to falling exports, low domestic consumption and collapse of the housing market.

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