China extends suspension of extra tariffs on US goods for one year, formalising agreement reached between presidents Xi Jinping and Donald Trump.
BEIJING: China has officially extended its suspension of additional tariffs on United States goods for one year.
The announcement formalises an agreement reached during talks between presidents Xi Jinping and Donald Trump in South Korea last week.
China’s Ministry of Finance stated that “for one year the 24% tariff on US goods will continue to be suspended, (and) a 10% tariff on US goods will remain”.
This suspension follows “the consensus reached in the China–US economic and trade consultations” and takes effect from November 10.
Trump similarly formalised Washington’s agreement to reduce additional tariffs on Chinese imports from 20% to 10%, also effective from November 10.
Tensions between the world’s two largest economies escalated this year as both nations imposed increasing tariffs on each other’s products.
Duties briefly reached prohibitive triple-digit levels, significantly hampering bilateral trade.
The two economic powers have maintained an uneasy truce since, with top officials holding several rounds of negotiations in recent months.
In a separate move, China said it would “cease implementing the additional tariff measures” imposed in a March order targeting American farm products.
That decision responded to Trump doubling additional tariffs on Chinese goods over Beijing’s fentanyl policies, now returning to 10%.
Beijing had imposed an additional 15% levy on US chicken, wheat, corn and cotton, plus a 10% tariff on American soybeans, pork, beef and dairy products.
These agricultural tariffs particularly affected farmers, a key political constituency for Trump.
More than half of US soybean exports previously went to China before Beijing halted orders as trade tensions intensified.
Following negotiations, Beijing also agreed to suspend restrictions on rare earths technology exports for one year.
Rare earths represent a strategic field dominated by China, essential for defence, automotive and consumer electronics manufacturing.
Washington correspondingly agreed to suspend for one year “Entity List” export restrictions on affiliates of blacklisted foreign companies with at least 50% ownership.
The United States will also halt for one year measures targeting China’s shipbuilding industry that prompted reciprocal port fees.
China will suspend its corresponding “countermeasures” for the same duration following US action. – AFP
