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US considers scrapping some tariffs on Chinese goods - report

By Abigail Townsend

Date: Tuesday 05 Nov 2019

US considers scrapping some tariffs on Chinese goods - report

(Sharecast News) - White House officials are debating removing tariffs on a number of Chinese goods, it emerged on Tuesday.
The Financial Times, citing five unnamed people briefed on the discussions, said that Donald Trump's administration was considering rolling back tariffs on $112bn of Chinese imports, including clothing and flatscreen monitors, that were introduced at a rate of 15% in September.

The move could prove a breakthrough in talks between the two sides, and prompt a ceasefire in the trade spate, as it would meet one of Beijing's core demands. Both the renminbi and Asian stock markets rallied on the report.

There is no guarantee the concession will be made, however. The FT said Washington was likely to insist on its own concessions in return, such as better protection of intellectual property for US companies and ensuring that any agreement is signed on US soil. It also said that Trump himself may yet veto rolling back tariffs.

Officials from both sides are working to secure a ceasefire that the US president and Xi Jinping, China's president, can sign in the coming weeks.

The two men had been due to sign an 'phase one' agreement at the Asia-Pacific Economic Cooperation Summit in Chile on 17 November. But the event has been cancelled because of civil unrest in the county and an alternative venue has so far yet to be secured.

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