China spares U.S. pork, soybeans from additional tariffs ahead of new trade talks

Click to play video: 'Money 123: Impact of U.S.- China trade tensions on investors' Money 123: Impact of U.S.- China trade tensions on investors
WATCH: The impact of U.S.- China trade tensions on investors – Aug 10, 2019

China will exempt some agricultural products from additional tariffs on U.S. goods, China’s official Xinhua News Agency said Friday, in the latest sign of easing Sino-U.S. tensions before a new rounds of talks aimed at curbing a bruising trade war.

The United States and China have both made conciliatory gestures, with China renewing purchases of U.S. farm goods and U.S. President Donald Trump delaying a tariff increase on certain Chinese goods.

READ MORE: U.S.-China trade talks to resume in October as economic impact lingers

China had imposed additional tariffs of 25% on U.S. agricultural products including soybeans and pork in July 2018. It raised tariffs on soybeans by a further 5% and on pork by a further 10% on Sept. 1.

“China supports relevant enterprises buying certain amounts of soybeans, pork and other agricultural products from today in accordance with market principles and WTO rules,” Xinhua said, adding that the Customs Tariff Commission of China’s State Council would exclude additional tariffs on those items.

Story continues below advertisement

WATCH: Trump says U.S. is giving China a 2 week reprieve on tariffs

Click to play video: 'Trump says U.S. is giving China a 2 week reprieve on tariffs' Trump says U.S. is giving China a 2 week reprieve on tariffs
Trump says U.S. is giving China a 2 week reprieve on tariffs – Sep 12, 2019

China has “broad prospects” for importing high-quality U.S. agricultural goods, Xinhua reported, citing unnamed authorities.

An outbreak of deadly African swine fever, which has cut China’s pig herd by a third since mid-2018, has propelled Chinese pork prices to record levels and left the country in need of replacement supplies from overseas. China is also expected to step up purchases of soybeans, historically the most valuable U.S. farm export which China has largely avoided buying since the trade war began last year.

READ MORE: Nike, Adidas among 200 footwear companies asking Trump to step off tariffs

Before the announcement of additional tariff exemptions, Chinese firms bought at least 10 boatloads of U.S. soybeans on Thursday, the country’s most significant purchases since at least June.

Story continues below advertisement

“It is hoped that the U.S. will be true to its words and fulfill its promise to create favourable conditions for cooperation in agricultural areas between the two countries,” the report said.

Lower-level U.S. and Chinese officials are expected to meet next week in Washington before talks between senior trade negotiators in early October. President Donald Trump said on Thursday he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact.

Sponsored content