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US exempts 437 products from additional China tariffs

President Donald Trump's administration is temporarily excluding 437 product types from the additional tariffs it imposed on an estimated $250 billion worth of Chinese goods in 2018, according to documents published by the Office of the U.S. Trade Representative.

The products affected, which range from printed circuit boards to plastic straws, come in three batches, based on the timing of the 2018 tariff actions.

Additional duties on Chinese goods with annual trade values of approximately $34 billion, $16 billion and $200 billion took effect in July, August and September of 2018, respectively.

Tariff exemptions for the $34 billion and $16 billion worth of goods will last for a year, while exemptions for the $200 billion worth of goods will expire on Aug. 7, 2020, according to notices published in the Federal Register.

The tariff exclusions, which were requested by some U.S. companies, were unveiled ahead of another round of high-level trade talks between the U.S. and China in early October.

Trump said Sept. 20 that he was looking for a "complete" trade pact with China and not a "partial deal," adding that additional purchases of U.S. agricultural goods by Beijing would not be enough to secure a trade agreement.

On the same day, U.S. and Chinese officials ended two days of talks in Washington in preparation for next month's meeting. The Chinese side, however, reportedly canceled a scheduled visit to farms in Montana and Nebraska, tempering hopes for an imminent breakthrough in the negotiations.

The news sent U.S. stocks lower, with the S&P 500 ending the trading day down 0.50%. The Dow Jones Industrial Average fell about 0.60% and the Nasdaq Composite Index dropped 0.80%.

Trump recently announced plans to delay tariff increases on $250 billion of Chinese imports as a goodwill gesture, after China disclosed a number of U.S. products that would be exempt from Chinese tariffs imposed in 2018.