China stated Thursday it’ll halve additional tariffs imposed against 1,717 products imported from the U.S. in 2019 following the signing of am interim trade deal that brought a break to a bruising trade battle.
China’s finance ministry mentioned in a statement that tariff cuts for the relevant items, which had been implemented on September 1, will take effect on February 14.
The cuts come about three weeks after the two nations signed the interim trade deal in Washington. That pact included China’s pledge to increase purchases of U.S. imports by $200 billion over two years in exchange for the U.S. rolling back several tariffs slapped against Chinese items.
The information was positive for financial markets and came as Beijing seeks to shore up investor and business confidence in China as a virus epidemic casts deep skepticism over the economic scope.
After the declaration, the yuan reached its highest in two weeks while Asian shares and Wall Street futures rallied.
China’s finance ministry mentioned in a statement that additional tariffs imposed on some goods shall be cut to 5% from 10% previously. In contrast, extra tariffs on some items will be halved to 2.5% from 5% previously.
China hopes it and the U.S. can follow the trade agreement and implement it to boost market temper, push bilateral trade improvement, and aid world economic development, the ministry added.
Some analysts stated following the trade agreement that China might need to roll back some of the duties on the U.S. imports akin to soybeans and crude oil in order to meet its purchasing vows.