China grants tariff exemptions on nearly 700 US goods
In an effort to support purchases of US goods, the Chinese government will grant exemptions on 696 retaliatory tariffs, the most substantial tariff relief to be offered yet.
18 February 2020
2 minute read
According to reporting from Reuters, China granted this exemption in order to fulfil its commitments made in the interim trade deal with the United States.
The announcement comes after the Phase 1 trade deal between China and the US took effect on Friday 14 February. This is the third round of tariff exemptions China has offered on US goods.
In the trade deal, China committed to increasing its purchases of US goods and services by $200 billion over two years. It has already rolled back some of its additional tariffs on US imports after the deal was signed.
The goods eligible for tariff exemptions include key agricultural products like beef, pork and soybeans. Energy products like liquefied natural gas and crude oil are excluded from tariffs as well - reversing the duties imposed on them during the escalating trade dispute last year.
According to White House adviser Larry Kudlow, Chinese President Xi Jinping told US President Trump that China will still meet its Phase 1 trade deal purchasing targets despite recent shocks to Chinese economic demand and consumption due to the caronavirus.
Beijing's announcement on 18 February emphasised that Chinese firms will submit applications for tariff exemptions based on commercial considerations and market conditions.
Firms can start submitting their applications on 2 March, and any exemptions granted will be valid for one year.
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