SINGAPORE (ICIS)--China will cut tariffs on some US imports by half starting from 14 February to boost trade relations with the US, the Customs Tariff Commission of the State Council said on Thursday.
The 10% and 5% duties imposed on US goods since 1 September 2019 will be cut to 5% and 2.5%, respectively, starting 13:01 Beijing time on 14 February, it said in a statement.
China in August last year announced to impose 10% and 5% additional tariffs on $75bn of US goods in two batches in a tit-for-tat tariff war with US.
The duties on the first batch was in place since 1 September last year while those on the second batch scheduled to start on 15 December 2019 was suspended following conclusion of a “Phase One” trade agreement.
The commission added that it would continue to work on waiving the additional tariffs on selected US products.
On 15 January this year, US President Donald Trump and China’s Vice Premier Liu He signed a the Phase One trade agreement as part of an effort to resolve trade tensions that have been ongoing since March 2018.
The trade agreement will lower tariffs from 15% to 7.5 % on an announced $120bn worth of US imports from China.
These tariffs, imposed in September 2019, will be reduced when the Phase One deal enters into force on 14 February.
Tariffs will remain in place on about $370bn out of $550bn in total US imports from China.
Remaining tariffs on US imports from China target machinery, parts, and components used broadly in manufacturing.
Thumbnail picture: Stacks of containers at Qingdao port in China. (Source: Imagine China/Shutterstock)
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