China tariffs: Beijing announces new raft of US imports eligible for waivers amid rising superpower tensions

Second batch of trade war tariff exemptions covers 79 products, including ores, chemicals and certain medical products

Importers must apply for waivers within six months of the announcement, with the exclusion process active for one year from May 19

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Importers in China must apply to the General Administration of Customs within six months of the announcement to be considered for waivers. Photo: AP

Published: 2:29pm, 12 May 2020Updated: 1:49pm, 26 Nov 2020

China has published a second batch of products to be exempt from US trade war tariffs, effective from next week for one year.

There are 79 products in total on the list published on Tuesday by the Ministry of Finance, including rare earth mineral ores, aircraft radar equipment, semiconductor parts, medical disinfectants, and a range of precious metals, chemical and petrochemical products.

Importers in China must apply to the General Administration of Customs within six months of the announcement to be considered for waivers, which are effective from May 19.

The first batch of exclusions were announced in September 2019, and included major agricultural commodities such as soybeans and pork, as well as petrochemical products.

The announcement comes at a heated moment for the United States and China, with sharpened rhetoric prevalent on both sides. US President Donald Trump last week threatened to tear up the phase one trade deal, signed in January, should China not increase its imports of US goods, as per the purchasing agreement element of the deal.

With supply chains on both sides severely disrupted by the coronavirus outbreak, bilateral trade shrunk in the first four months of the year.

China’s imports of US goods fell by 11.1 per cent in April, customs data released last week showed, and by a colossal 85.5 per cent in March. Given that China imported much fewer goods from China in 2019 than it did in 2017 – the baseline scenario used to map out the terms of the trade deal – it is not close to meeting the targets. It is estimated that China would have to double its monthly US imports to meet the lofty targets.