(CN) China Tariff Committee: To cut tariff rates by as much as 50% (some goods to be cut from 10% to 5% prior and others from 5% to 2.5%) on $75B in US goods, effective Feb 14th - financial press
Wednesday, February 5, 2020 11:03:25 PMEST
- Tariff reductions for the relevant goods, which were implemented on Sept. 1, will take effect from 0501 GMT on Feb. 14th
- The tariff reductions relate to 1,717 US products.
- Other punitive tariffs remain in effect
- Hope to work with US to eliminate all tariffs
- Hopes China and US can abide by agreed trade deal and implement it well
- Hope China and the US can work to boost market confidence, push bilateral trade development and world economic growth
- Will cut tariffs on US crude oil to 2.5% from 5.0%
- Will cut tariffs on US soybeans to 27.5% from 30%
- Will cut tariffs on US pork to 30% from 35%
- Will cut tariffs on US beef to 30% from 35%
- WIll cut tariffs on US chicken to 30% from 35%
**Note: Timing of tariff cuts corresponds to planned implementation of US tariff cuts on Chinese products
Recent Trade developments
- On Jan 15th China's Vice Premier Liu He and US President Trump signed the US–China Phase One trade deal in Washington DC
- On Dec 13th 2019 US and China announced an initial phase 1 trade deal where new tariffs that were to be mutually imposed on December 15th would not be implemented
- China has also previously announced that it planned to adjust import tariffs for some products starting on Jan 1 2020 (comments from Dec 23rd 2019). These items included frozen pork (tariff to be cut to 8% from 12%).
**Reminder: China had previously announced 5-10% retaliatory tariffs on $75B of US goods, effective on Sept 1st and Dec 15th of 2019; Under the phase 1 trade deal the US and China delayed the tariffs that were due to take effect on Dec 15th 2019.
- White House official: China hasn't agreed to additional tariff cuts or eliminations as part of the [trade] deal but will need to issue waivers or adjustments to meet purchase commitments (press from Jan 15th)
- Some analysts have said that China might need to cut tariffs on the US in order to meet its purchase commitments under the phase 1 trade deal (financial press)
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- The tariff reductions relate to 1,717 US products.
- Other punitive tariffs remain in effect
- Hope to work with US to eliminate all tariffs
- Hopes China and US can abide by agreed trade deal and implement it well
- Hope China and the US can work to boost market confidence, push bilateral trade development and world economic growth
- Will cut tariffs on US crude oil to 2.5% from 5.0%
- Will cut tariffs on US soybeans to 27.5% from 30%
- Will cut tariffs on US pork to 30% from 35%
- Will cut tariffs on US beef to 30% from 35%
- WIll cut tariffs on US chicken to 30% from 35%
**Note: Timing of tariff cuts corresponds to planned implementation of US tariff cuts on Chinese products
Recent Trade developments
- On Jan 15th China's Vice Premier Liu He and US President Trump signed the US–China Phase One trade deal in Washington DC
- On Dec 13th 2019 US and China announced an initial phase 1 trade deal where new tariffs that were to be mutually imposed on December 15th would not be implemented
- China has also previously announced that it planned to adjust import tariffs for some products starting on Jan 1 2020 (comments from Dec 23rd 2019). These items included frozen pork (tariff to be cut to 8% from 12%).
**Reminder: China had previously announced 5-10% retaliatory tariffs on $75B of US goods, effective on Sept 1st and Dec 15th of 2019; Under the phase 1 trade deal the US and China delayed the tariffs that were due to take effect on Dec 15th 2019.
- White House official: China hasn't agreed to additional tariff cuts or eliminations as part of the [trade] deal but will need to issue waivers or adjustments to meet purchase commitments (press from Jan 15th)
- Some analysts have said that China might need to cut tariffs on the US in order to meet its purchase commitments under the phase 1 trade deal (financial press)