SIMIC

The tariff exemption that was due to expire will be extended through December 25. The products include rare earth ore, medical disinfectants, and wafers.

The Consumer Price Index (CPI) for all urban US consumers rose 4.2 per cent in April compared to the previous year. The increase was the largest 12-month increase since a 4.9 per cent rise for the period ending September 2008.

In comparison, China's consumer inflation ran at a low level in April, with a 0.9 per cent gain.

US officials are indicating that the move could be a show of China's goodwill for possible trade talks with the US. Officials have been vocal about possible trade talks with China recently.

"China is willing to solve China-US economic issues and offer a positive discussion environment for future bilateral communication," said Fudan University deputy director Song Guoyou.

However, despite the signal for trade talks, US officials have also been sending mixed signals in recent days with tough rhetoric against the nation.

Chinese Academy of Social Sciences trade expert Gao Lingyun declared that the US appears more anxious than China to resolve the tariff issue.

"As scheduled, the two countries should have a discussion in June and the staffers of both sides have maintained weekly communication. But it seems that the US is eager to advance the talks," said Mr Lingyun.

"With its own inflation problem, plus the burden of tariffs, US consumers could not bear it," said Mr Lingyun.