Ahead of the negotiations on trade war between China and the US, scheduled in October 2019, the Chinese authorities lifted tariffs from a number of US goods to ease the tensions before the talks. However, the tariffs were not lifted on key items such as agricultural products. The tariffs would be lifted from September 17 onwards and the policy would remain in effect for a year.
Both sides had been increasing tariffs on each other and the world economy felt the effects and stock markets all over the world declined. Experts suggest that through this move, China is expecting to negotiate an agreement to finally end the trade war and prevent the US from applying more tariffs.
Donald Trump commenting on the issue said that the Chinese economy is losing more than the US and the trade war is going in the favor of the US. He added that, “China is eating the tariffs”, and that China is feeling the effects of the war. China recently lowered the amount of reserves that people could keep in the People’s Bank of China, which would add around $126 billion in the Chinese economy.
Experts argue that although the trade war is going in the favor of US, the US economy is also feeling the adverse effects of the war, with many farmers earning much lesser income than before and the number of jobs in major industries of the US is also declining.