Markets Surge as China Mulls Tariff Exemptions on US Goods
Global stock markets rallied after reports emerged that China is considering exempting certain US products from its 125% tariffs.
In Asia, Japan’s Nikkei jumped 1.8% and Hong Kong’s Hang Seng rose 1.1% following news that a task force from China’s Ministry of Commerce is gathering lists of goods that may be excluded from the tariffs.
European markets were also trading higher in early sessions, boosted by a Reuters report that Chinese authorities are inviting companies to submit requests for tariff exemptions on specific US imports.
Michael Hart, president of the American Chamber of Commerce in China, said: “The Chinese government has been asking our companies what goods they’re importing from the US that aren’t available elsewhere and are critical to their supply chains.”
A list of 131 categories of products eligible for potential exemptions was circulating among businesses, trade groups, and on Chinese social media by Friday.
The positive momentum added to an already strong week for global equities, supported by signals from President Donald Trump that he may reduce tariffs on Chinese goods.
In a further sign of easing trade tensions, the White House suggested that its first trade agreement could come with South Korea, noting that negotiations were advancing more quickly than anticipated.
