Hope is swirling this morning that China may relax some of the tariffs it has imposed on US goods as part of Donald Trump’s trade war.
With the economic costs of the tit-for-tat trade war hurting Chinese companies, Beijing appears to be seeking to mitigate the economic fallout from the conflict.
According to Bloomberg, this means China’s government is considering suspending its 125% tariff on some US imports – a sign that policymakers are worried about the damage caused by its trade war with Washington.
This potential easing in the US-China trade conflict comes after Trump revealed yesterday that the world’s two largest economies had held talks to help resolve the trade war.
The US president told reporters:“We may reveal it later, but they had meetings this morning, and we’ve been meeting with China.”
Reuters is also reporting that China is considering exempting some US imports from its 125% tariffs and is asking businesses to identify goods that could be eligible.
A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, Reuters adds, citing a source.
Signs of de-escalation in the trade war will cheer investors, after a bruising few weeks since Trump announced his tariffs on trading partners.
It could also reassure politicians and central bankers around the world, who fear the consequences of a slowdown in world trade.
The US-China trade conflict is forcing companies to rethink their supply chains.
Apple, for example, is reportedly pivoting away from China, which would be a major change to its supply chain.
The Financial Times reports this morning that Apple plans to shift the assembly of all US-sold iPhones to India by as soon as the end of 2026. That would mean doubling the iPhone output in India.
Retail sales in Great Britain grew faster than expected last month – in an encouraging sign for growth this year.
Retail sales volumes rose by 0.4% in March, the Office for National Statistics reports, surprising economists who had expected a 0.4% fall.
Clothing and outdoor retailers reported that good weather boosted sales, the ONS said. However, that was partly offset by falls in supermarket sales. The agenda
• 9.30am BST: UK trade data for Q4 2024
• 3pm BST: University of Michigan’s survey of US consumer confidence
• 3pm BST: IMF holds press conference on the economic outlook for Europe
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