WASHINGTON, Sept 20 (Reuters) - U.S. President Donald Trump said his administration was "making a lot of progress" with China on Friday, as deputy-level trade talks continued for a second day and Washington lifted tariffs on over 400 Chinese products.

Trump, speaking to reporters at a White House meeting with Australian Prime Minister Scott Morrison, said the United States was taking in billions of dollars from tariffs imposed on Chinese products, adding that the total would soon reach $100 billion.

"I will say this: we're making a lot of progress with China," Trump said.

The United States Trade Representative's office issued three Federal Register notices exempting a wide range of products from tariffs in response to requests from U.S. companies, which argued that the levies would cause economic hardship.

The 437 exempted products range from printed circuit boards for computer graphics processors to dog collars, laminated wood flooring and miniature Christmas lights.

Chinese and U.S. negotiators are holding two days of talks that were expected to focus heavily on agriculture, and lay the groundwork for high-level talks in early October that would determine whether the two countries are working toward a solution or headed for new and higher tariffs on each other's goods. A delegation of about 30 Chinese officials, led by Vice Finance Minister Liao Min, met counterparts at the U.S. Trade Representative's (USTR) office near the White House. Deputy USTR Jeffrey Gerrish led the U.S. delegation.



RELATED: Take a look at the products that have been impacted by the U.S.-China trade war:



60 PHOTOS Products directly hit by Trump's tariffs on Chinese goods See Gallery Products directly hit by Trump's tariffs on Chinese goods Meat: pork; beef intestine; rabbit meat; venison; frog legs Fish and seafood:live fish including ornamental fish, trout, eels, tuna, and carp; chilled or frozen meat of various types of trout, salmon, halibut, plaice, sole, albacore, tuna, herring, mackerel, cobia, swordfish, pollack, whiting, catfish, rays, and more; various types of salted or smoked fish; other seafood including various types of lobsters, crabs, shrimps, prawns, oysters, scallops, mussels, clams, squid, octopus, conchs, abalone, sea cucumbers, and sea urchins. Non-meat animal products such as eggs and dairy:Whey products; butter; various types of eggs including chicken; honey; hair of animals including human, hog, horse and badger; animal intestines, bladders; feathers; bones including shells, beaks, corals, hooves, antlers, and more. Vegetables:onions; garlic; cauliflower and broccoli; cabbage; carrots; turnips; radishes; beats; cucumbers; peas of various types; beans; lentils; celery; mushrooms; peppers of various types; squash; okra; sweet corn; potatoes; sweet potatoes and yams; some types of tomatoes; spinach; Brussels sprouts. Fruit and Nuts: Coconuts; cashews; almonds; hazelnuts; walnuts; chestnuts; pistachios; macadamia nuts; pecans; dates; figs; pineapples; guavas; oranges; mandarins; clementines; raisins; grapes; apples; pears; quinces; peaches; berries including strawberries, raspberries, cranberries, blueberries and others; bananas; a variety of dried fruits; peels of various fruits. Cereals: wheat, including durum wheat; barley; oats; corn; various types of rice; grain sorghum; buckwheat; quinoa; and more. Mill products: flours including those form wheat, corn, buckwheat, rice, rye, other cereals, potatoes, and bananas; groats and meal of various types including wheat, corn, oats, and rice; malt; starches of wheat, corn, potato, and more Oil seeds: soybeans; seeds of sunflower, flax seed, sesame, mustard, poppy and more; planting seeds for certain crops; cocoas and mint leaves; and seaweeds. Sugars and candies: cane sugar; candies with no cocoa Breads and Pasta: uncooked pasta; various breads, pastries, cakes, and biscuits. Prepared vegetables and fruits: various vegetables and fruits previously listen in their prepared or preserved forms; various fruit jams including strawberry, pineapple, apricot, and more; peanut butter; various fruit juices including orange, pineapple, lime, grape, apple, and more. Other food items: soy sauce; condiments and seasonings; protein concentrates. Beverages and vinegars: water, including mineral water; fruit or vegetable juices and juice mixes; beer from malt; wine, including rice wine; ethyl alcohol; vinegars Food processing waste and animal feed: brans from processing; oil cakes; dog or cat food; animal feed Tobacco products: various types and preparations of tobacco; tobacco refuse; cigars; cigarettes; smoking tobacco Salts and minerals: salt/sodium chloride; sulfur; graphite; quartz; types of clays; chalk; slate; marble; granite; sandstone; dolomite; gypsum; some plasters; some types of cement; mica; Epsom salts Ores, slag, and ash: ores of iron, copper, nickel, cobalt, aluminum, lead, zinc, tin, chromium, tungsten, uranium, titanium, silver, other precious metals, and others; slag, various types of ash. Mineral fuels and oils: coal; lignite; peat; coke; tars; various types of light oil; various types of kerosene; petroleum oils; liquefied fuels including natural gas, propane, butane, ethylene, and petroleum; oil shale and tar sands Inorganic Chemicals: chemicals such as chlorine, sulfur; carbon, nitrogen, oxygen, and silicon; acids including sulfuric, nitric, and more; various types of fluorides, chlorides, sulfates, nitrates, carbonates, and more. Organic chemicals Fertilizers: animal or vegetable fertilizers; urea; ammonium sulfate; sodium nitrate; and more. Tanning and drying extracts, dyes, and paints Essential oils, perfumes: perfume; lip or eye make up preparations; manicure or pedicure products; shampoo; hairspray; bath salts. Soaps and cleaning products: various types of soap; leather and textile treatments; polishes for shoes and furniture. Glues, adhesives, and enzymes Cigarette lighter fluid Photographic goods: various types of photo plates; instant film; various types of film in rolls; various types of motion picture film. Various chemical products: pesticides; herbicides; fungicides Plastics: vinyl flooring and other plastic floor and wall coverings; sausage casings; bags; gloves including baseball gloves; rain jackets; machinery belts. Rubber: latex; rods, tubes, and other products; conveyor belts; various types of transmission belts; various types of pneumatic tires; gloves; gaskets; dock fenders. Raw hides and leather: animal skins including cow, buffalo, sheep, goats, reptile; various types of leather made from cow, buffalo, sheep, goats, reptile; leather trunks and suitcases; leather handbags; CD cases; gloves including ski, ice hockey, and typical use; belts; fur clothing, incluidng artificial fur. Wood: fuel wood; charcoal; various types of wood including oak, beech, maple, ash and cherry; moldings; rods; particleboard; various types of plywood; doors; corks and stoppers; wicker and bamboo baskets. Wood pulp products Paper: Newsprint; writing paper; vegetable parchment; carbon paper; self-adhesive paper; cigarette paper; envelopes; tablecloths; handkerchiefs; folders. Silk Wool or animal hair products: cashmere; yarns; tapestries and upholstery. Cotton: fibers; thread; yarn; denim; satin. Flax: yarn; fabrics Man-made textiles: polypropylene; rayon; nylon; polyester Other textile products, rope, twine: hammocks; fish nets; carpets; Fabrics: corduroy; gauze; terry towel; lace; badges; embroidery Headgear: caps; hairnets; wool hats; head bands Stone, plaster, cement, asbestos: stone for art; marble slabs; roofing slate; millstones; sandpaper; floor or wall tiles; cement bricks. Ceramics: fire bricks; pipes; tiles; porcelain and china. Glass and glassware: balls; rods; drawn or blown glass; float glass; tempered safety glass; mirrors; carboys, bottles, jars, pots, flasks, and other containers; microscope slides; woven fiberglass Precious stones and pearls: industrial diamonds; silver and products made of silver; gold and products made of gold; platinum; palladium. Iron and steel and products derived from the metals:drums; tubes; pipes; doors; windows; screws; horseshoes; Copper: plates; cables; tubes; pipes; springs Nickel: bars; rods; wires Aluminum:powder; cable; wire; screws. Various metal products, tools, cutlery: industrial items made from lead, zinc, tin, and more; saw blades; bolt cutters; hammers; wrenches; crow bars. Machinery, both industrial and retail: steam turbines; engines; fuel-injection pumps; air compressors; air conditioning machines; refrigerators; cream separators; hydraulic jacks; escalators; manure spreaders; copiers; automatic beverage-vending machines Electronics: vacuum cleaners; hair clippers; spark plugs; generators; bicycle lights; electric amps; television cameras; various types of TVs; video projectors. Vehicles and parts: axles; driving shafts; gear boxes; radiators. Parachutes Ships and boats: sailboats; motorboats; canoes; yachts. Instruments for scientific or medical purposes: microscopes; cameras for non-art purposes; gauges for pressure, electrical currents, and more. Clocks and watches Furniture, bedding, mattresses: car seats; wood chairs; furniture designed for offices, kitchens, and more; mattresses; chandeliers; lamps. Assorted items: buttons; stamps; paintings; collections of zoological, botanical, mineralogical, anatomical, historical, archaeological interest; antiques of an age exceeding one hundred years Up Next See Gallery Discover More Like This HIDE CAPTION SHOW CAPTION of SEE ALL BACK TO SLIDE

The United States is asking that China substantially increase purchases of American soybeans and other farm commodities, a person with knowledge of the planned discussions told Reuters.

Chinese delegates will visit American farm regions with U.S. officials next week, in a gesture of goodwill.

However, the Trump administration and China's Communist Party remain far apart on issues that are the basis of their trade dispute, including the U.S. declaring some Chinese state companies national security risks, and Beijing's refusal to revamp its economic model by eliminating subsidies for state companies.

Trade experts, executives and government officials in both countries say that even if the September and October talks produce an interim deal, the U.S.-China trade war has hardened into a political and ideological battle that runs far deeper than tariffs and could take years to resolve.

Observers in Beijing said the new tariff exemptions were a welcome sign, but the trade talks remain on a delicate footing.

The exemptions are "seen as a goodwill signal by China," Hu Xijin, editor of the influential state-run tabloid Global Times, said Friday on Twitter. "Interaction of goodwill between China and the U.S. is still fragile." (Reporting by David Lawder, Lisa Lambert, Heather Timmons; Editing by Tom Brown)

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