China Lifts Tariffs On $75 Billion Of American Goods
In a unilateral action not called for by the recent Phase 1 trade agreement between the U.S. and China, China’s State Council Tariff Commission announced February 6 that tariffs on $75 million worth of U.S. and Canadian goods would be lifted. The action changed the tariffs on some items from 10 percent to 5 percent, and on others from 5 percent to 2.5 percent. The changes take effect on February 14.
Most observers interpreted the move as an attempt to offset the effects of rapidly spreading coronavirus, which originated in the city of Wuhan and has resulted in significant travel and trade slowdowns that could affect the Chinese economy potentially more than the tariff war itself. Among the products were many that China needs to help combat coronavirus.
The official statement said, “In addition to the above adjustments, other tariff measures on the United States and Canada will continue to be implemented in accordance with regulations.”