China tariffs: Beijing announces cuts as part of phase one deal despite coronavirus outbreak

China will cut a 10 per cent tariff to 5 per cent, and a 5 per cent tariff to 2.5 per cent in efforts to implement the phase one deal signed with the United States

The products covered include automotive and agricultural goods including pork, chicken, beef and soybeans, chemicals, crude oil, whiskey, and seafood

Reading Time:4 minutes

US President Donald Trump and Chinese Vice-Premier Liu He signed the phase one trade deal in January. Photo: EPA

Published: 12:34pm, 6 Feb 2020Updated: 1:48pm, 26 Nov 2020

China announced on Thursday that it will halve additional tariffs on US$75 billion of American products imposed late last year from next week, a sign that Beijing is implementing the phase one deal with United States despite the coronavirus outbreak.

Beijing will cut a 10 per cent punitive tariff to 5 per cent, and a 5 per cent tariff to 2.5 per cent on February 14, according to China’s Ministry of Finance.

China announced in August that it would impose tariffs in two batches in September and in December, however, the second round due to come into effect on December 15, was not implemented.

“China hopes both sides can follow what have been agreed in the deal and make efforts to implement relevant parts of the deal to boost market confidence, to promote bilateral relations, and to help world economic growth,” the statement said.

China hopes both sides can follow what have been agreed in the deal and make efforts to implement relevant parts of the deal to boost market confidence, to promote bilateral relations, and to help world economic growth

Ministry of Finance

The Chinese government said that the planned reduction of tariffs on US products was in response to a decision by the US to halve 15 per cent an additional tariff on US$120 billion of Chinese goods to 7.5 per cent from February 14.