The temporary move is set to last for about a year
U.S. President Donald Trump on Friday temporarily lifted tariffs on hundreds of Chinese goods that he imposed last year, softening his stance in the trade conflict ahead of next month’s negotiations.
The decision helped buoy stock markets looking for light at the end of the tunnel as the trade war drags into its second year.
With high-level talks due to restart in Washington early next month, Trump’s decision marked the third time since August that the United States has delayed or removed tariffs on Chinese imports ahead of the year-end shopping season. Earlier this month, Trump announced a two-week delay in a new round of duties increases on hundreds of billions of Chinese goods that had been due to take effect on Oct. 1.
According to Federal Register notices published on Friday morning, hundreds of goods that had been subject to three waves of tariffs imposed last year will be exempted from those additional duties for about a year. The goods now exempted cover a broad range of uses and applications and include steel girders, electronics, such as data processors used by manufacturers, as well as pumps, filters, forklifts, mechanical equipment and pet supplies.
The trade war has weighed on the global economy. The Organization for Economic Cooperation and Development this week slashed growth forecasts due to the conflict. While slowing, the U.S. economy has so far been more resilient, with a recent batch of economic data showing surprising strength in important areas.
The Federal Reserve this week however cut interest rates for the second time this year, moving to counter the danger posed by the trade war, which has badly damaged the U.S. manufacturing and agricultural sectors. After last month’s sharp deterioration in trade relations, U.S. duties on the majority of Chinese imports are nevertheless due to rise in stages through the end of 2019.