Donald Trump praises China's tariff exemptions as trade talks approach

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President Donald Trump is postponing tariffs on $250 billion in Chinese goods as a "gesture of good will".

President Trump said on Wednesday that he had delayed his proposed increased tariffs on United States dollars 250 billion worth of Chinese goods from October 1 to October 15.

The Chinese Finance Ministry announcement earlier the in day mostly impacts small items such as fish food, cancer medicine, lubricant oil and various chemicals.

The increase in tariffs from 25% to 30% was supposed to take effect on that date.

China said on Thursday that Chinese companies have started to inquire about prices for USA agricultural goods purchases, in a further sign of a potential de-escalation in a bitter trade war between the two countries.

The delayed round of tariffs applies mostly to industrial goods.

China Vice Premier Lui He and President Donald Trump
US-China Trade War: Beijing Exempts 16 Items From Retaliatory Tariffs Ahead Of Talks

Significant US exports to China, like pork, soybeans and American-made cars, are among the goods that will still be hit by the hefty taxes.

The apparent cooling of the trade war couldn't come too soon for the U.S., which has seen markets slump dramatically since the two countries started trading tariff hikes in earnest again last month.

Beijing and Washington have been embroiled in a year-long trade war that has seen the two sides slap punitive tariffs on hundreds of billions of dollars in two-way trade.

Beijing has said it would work on exempting some U.S. products from tariffs if they are not easily substituted from elsewhere.

Welcoming Trump's announcement, Gao Feng, China's Ministry of Commerce spokesman told media in Beijing on Thursday that Chinese buyers have already started to make enquiries about the prices of United States farm products, including soybeans and pork, although he did not elaborate on the timing or size of any intended purchases. Exports to the USA were off 16% while imports were off 22%.

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