China has announced a one-year extension of its suspension on additional tariffs on US goods, following an agreement reached between Presidents Xi Jinping and Donald Trump. The move is a significant development in the ongoing trade negotiations between the two countries.
The decision, announced on the Ministry of Finance website, will see a 24 percent tariff on US goods continue to be suspended, while a 10 percent tariff will remain in place. This agreement follows a meeting between the two leaders in South Korea at the end of October, which effectively extended a delicate truce for a year.
The trade tensions between China and the US have been escalating over the past year, with both countries imposing tariffs on each other’s products. At one point, duties on both sides reached triple-digit levels, severely impacting trade. However, with this latest development, it appears that both countries are making an effort to ease tensions.
The suspension of tariffs is set to take effect from November 10, the same day that the US will cut its additional tariffs on Chinese imports from 20 percent to 10 percent. China has also agreed to cease implementing additional tariff measures on American farm products, including chicken, wheat, corn, and cotton, which were imposed in response to the US doubling tariffs on Chinese goods.
The move is expected to benefit US farmers, who have been severely impacted by the trade dispute. More than half of US soybean exports went to China last year, but Beijing halted all orders as the trade dispute deepened. The suspension of restrictions on the export of rare earth technology, a strategic field dominated by China, is also a significant development.
In addition to the tariff suspension, China has agreed to suspend for one year restrictions on the export of rare earth technology, while the US has agreed to suspend export restrictions on affiliates of blacklisted foreign companies. The US has also agreed to halt measures targeting China’s shipbuilding industry, which had led to both sides applying port fees against each other’s ships.
The latest developments suggest that both countries are making an effort to ease trade tensions, which have been a major concern for the global economy. The agreement is a positive step towards resolving the ongoing trade dispute and is expected to have a significant impact on the global trade landscape. With the suspension of tariffs and restrictions, both countries can now focus on negotiating a more comprehensive trade deal.