China waives tariffs on some US goods, denies US claim of talks

China exempted some US imports from its steep tariffs in a sign on Friday that the trade war between the two countries could be easing, though China quickly knocked down US President Donald Trump's assertion that negotiations were underway.

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Business groups said China has allowed some US-made pharmaceuticals to enter the country without paying the 1258 duties that Beijing imposed earlier this month in response to Trump's 1458 tariffs on US imports.

Also, a list of 131 product categories said to be under consideration for exemptions was circulating among some businesses and trade groups. Reuters could not verify the list, which includes vaccines, chemicals and jet engines, and China has not yet communicated publicly on the issue. Trump's administration has in recent days signaled it is looking to de-escalate the confrontation between the world’s two largest economies, and Trump himself told TIME magazine that talks were taking place and that Chinese President Xi Jinping had called him.

"I don't think it’s a sign of weakness on his behalf," he said.

China denied that discussions were happening.

"China and the US are NOT having any consultation or negotiation on #tariffs. The US should stop creating confusion," the Chinese Embassy in Washington wrote on social media. In addition to the steep tariffs on China, Trump has announced targeted tariffs on dozens of other countries, which he has suspended until July 9. That has set off a scramble among US trading partners to strike individual trade deals with Washington before the deadline - a tall order, given that past trade deals have typically taken years to negotiate.