China exempts some U.S. imports from 125% tariff rate [Video]

China exempted some U.S. imports from its 125 per cent tariffs on Friday, according to businesses, although China quickly knocked down U.S. President Donald Trump’s assertion that negotiations between the two countries were underway.

Trump’s administration has in recent days signalled it is looking to de-escalate the confrontation between the world’s two largest economies, which has so far frozen much of the trade between them and raised fears of a global recession. 

“As a quid-pro-quo move, it could provide a potential way to de-escalate tensions,” said Alfredo Montufar-Helu, a senior adviser to the Conference Board’s China Center, a think-tank.

But he cautioned: “It’s clear that neither the U.S. nor China want to be the first in reaching out for a deal.”

Trump told reporters on Friday that he had spoken to Chinese President Xi Jinping “numerous times,” but did not say when the two leaders last talked or what topics …