January 21, 2021

China to cut tariffs on US$75 billion in US imports

1 min read

BEIJING: China said on Thursday (Feb 6) it will halve punitive tariffs on US$75 billion in US imports from Feb 14, a month after Beijing and Washington signed a truce in their long-running trade war.

The reduction will apply to levies of 5 per cent and 10 per cent that were imposed on more than 1,700 items in September, according to the State Council Tariff Commission.

Products that had been hit by the 10 per cent tariffs included fresh seafood, poultry and soybeans.

The tariffs also applied to items such as tungsten lamps for scientific and medical purposes, as well as some types of aircraft.

The move is aimed at “promoting the healthy and stable development of China-US economic and trade relations”, the Commission said in a statement.

It said it “hopes that both parties will be able to abide by their agreement, strive to implement its relevant content, (and) boost market confidence”.

The US and China in January signed a partial deal that dialled down tensions in their bruising trade war, with Beijing agreeing to buy an additional US$200 billion in American goods over the next two years.

The tariff reductions also come as China grapples with a shortage of resources in its fight against the new coronavirus, which has claimed more than 560 lives.