China removes more tariffs on imported US Products
China agreed to purchase over $200 bn worth of US products and services over the next 2 years.
China announced on Tuesday it would accept applications for new tariff exemptions for at least 694 products imported from the United States which includes key agricultural and energy products such as soybeans, beef, pork, crude oil and liquefied natural gas.
This third exemption, is the most substantial to be granted as of today by China since the start of the trade war with the United States, come a month after the signing of a phase one trade deal between Washington and Beijing. China has committed to boosting its purchases of goods and services from the US by $200 billion over the next two years
China is slicing tariffs significantly on $75 billion worth of U.S. products, the Chinese government's news agencies report. The move is in reciprocation for the Trump administration's plan, announced last month, to halve tariffs on about $112 billion in Chinese goods bound to the US.
The tariff cuts, both slated to take effect, are the latest sign that this trade conflict between the world's largest economies is finally easing tensions, it has been a long time coming.
China will drop 10% tariffs on some U.S. goods to 5%; other tariffs will fall to 2.5% from 5%, according to the China Daily, which cited a statement from China's Customs Tariff Commission of the State Council.
The shift comes three weeks after President Trump signed what the White House calls "Phase 1" of a trade break with China, in which he agreed to lower some of the tariffs imposed on Chinese goods.
The deal also calls for China to buy more U.S. goods and services, at a rate of $200 billion over the next two years, compared with 2016 and 2017 trade levels.
China increased tariffs in September, when President Trump's tariffs on more than $100 billion of Chinese imports went into effect. Since then, both sides have canceled or cut tariffs on billions of dollars' worth of products.
To ease economic and trade tensions and expand cooperation, the Chinese side decided to adjust related measures accordingly, an unidentified official from China's Ministry said Thursday, according to the Chinese state news.