A battle that started a year ago between China and the U.S. on each other’s goods has been concluded with some trade agreement in the trade war. The Ministry of Finance, China has announced a reduction by half in duties from 10% to 5% on U.S. goods and 5% to 2.5% in other countries. China’s main focus is on the U.S. as the new agreement halves duties of $75 billion goods duty, effective from 14 February 2020.
China’s move in cutting duty by half was to ensure that the relationship between the U.S. and China in trade moves healthily and with stable development. This was done after the tariff increase that had happened in the past when the U.S. reduced tariffs of china imported goods from 15% to 7.5 % in January
The new duties will apply on U.S. crude, which will reduce to 2.5% from 5% and soybean tariffs to 2.5% reduction. The phase one trade deal signed on January 15 has brought up concerns regarding if China will honor the terms of the trade deal, which includes a commitment to buy an additional $200 billion worth of American goods and services over the next two years.
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The deal also says that the U.S. and China will “consult” each other if “natural disaster” or other emergencies that could affect commitments arise. China might have flexibility in reaching its import targets, Darci Vetter, Chief Agricultural Negotiator at the Office of the US Trade Representative (USTR), said in a statement.
China and the U.S. hope that both parties can comply with the agreement to advance market confidence, promote the development of bilateral economic ties, and facilitate global economic growth. This is despite China having to fight the coronavirus and the hope of rolling back tariffs on the second phase of the trade deal.
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