China has announced that it will be suspending its 24 percent tariff on US goods for one year but will keep a 10 percent levy for certain goods.
China has announced on Wednesday that it will be suspending its 24 percent tariff on US goods for one year. In the latest announcement, the Chinese finance ministry further stated that it will keep the 10 percent tariffs on certain goods, Reuters reported.
This decision from the State Council’s tariff commission follows last week’s meeting between Chinese President Xi Jinping and US President Donald Trump on the sidelines of the APEC CEO Summit in South Korea.
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The commission also announced China, the world’s top agricultural buyer, will lift some tariffs of up to 15% on US agricultural goods from November 10.
Trade tensions ease
After a falling out due to Trump’s high tariffs on China, both Washington and Beijing imposed tit-for-tat tariffs on each other and crossed the 100 percent mark for certain goods.
Due to the rising tensions since Trump’s return to the White House, trade delegations from both nations met in Geneva and called a “truce”.
The US agreed to cut tariffs on Chinese goods to 30%, while China reciprocated with reductions US goods to 10%. Both sides agreed to assess the situation after 90 days.
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Tensions erupted again in October after Trump announced the imposition of 100 percent tariffs on Chinese imports from November 1. This call was made in response to China’s decision to expand its rare earth element export controls.
In response, China imposed sanctions on five US linked subsidiaries in South Korea. Amid the tensions, Trump and XI Jinping met in South Korea, following which, both nations have stated they are close to a trade deal and have eased tensions.
The article originally appeared on Hindustan Times
