There are signs of a freeze of the ongoing trade war between the US and China. The latest initiative has been from China. China has announced that it will now waive tariffs on 16 types of American goods. It is worth noting that this announcement has been made by China at a time when it is going to start talks again with the US on the issue of trade war from next month.
The official statement issued by China said that this tariff exemption on American goods will be effective from September 17. According to the news agency AFP, two lists related to the exemption on tariffs have been issued by the Customs Commission of the State Council. Products that are said to be exempt include sea food products and anti-cancer drugs.
It is worth mentioning that due to the trade war that has been going on for months, both the countries are suffering a lot. Manufacturing in the US has seen a decline of 2-3 per cent and has come down from 51.2 per cent to 49.1 per cent. At the same time, China’s economic growth rate is also the lowest recorded in the last 27 years. The Chinese currency, the yuan, is also steadily coming down. Alam is that the yuan is going through the worst phase in the last 11 years.
The new turning point in the US-China trade war has not only reduced investor confidence but has also blurred the global economic scenario. Investors are preferring investment in secured assets over currencies. However, this initiative of China is showing signs of stopping the trade war between the two countries. But if this is not done, it will cost American families more than Rs 10 lakh crore annually. At the same time, the Chinese market will also get a big blow.