China announced Feb. 6 that it would cut in half its previously implemented additional tariffs on an estimated $75 billion worth of U.S. imports, following the signing of a Phase One trade deal between two nations.
“To ease economic and trade tensions and expand cooperation, the Chinese side decided to adjust related measures accordingly,” according to China’s Ministry of Finance. “It is our hope that both sides will work together toward ultimately removing all additional tariffs.”
China’s announcement – to be implemented Feb. 14 – will affect tariffs levied against 1,717 U.S. goods last year. China’s finance ministry said in a statement that additional tariffs levied on some goods will be cut to 5 percent from 10 percent and others lowered to 2.5 percent from 5 percent.
As part of the Phase One deal, China agreed to buy an additional $200 billion worth of products from the United States. Larry Kudlow, President Trump’s chief economic adviser, said in an interview with Fox Business News earlier this week that the deadly outbreak of coronavirus in China could delay exports of U.S. goods to the country. “It is true…the export boom from that trade deal will take longer because of the Chinese virus,” Kudlow said.
Secretary of Agriculture Sonny Perdue told members of the media that the United States should be patient with China’s ability to meet its trade pledges, given the coronavirus outbreak. “If they’re really trying and it really just blows the economy out of the water, then we would have to be understanding of that,” Perdue said.
In a related development, USDA on Feb. 6 issued a 15-page document outlining the agricultural provisions of the U.S.-China Economic and Trade Agreement and USDA’s trade forecasts, authored by the department’s Office of the Chief Economist. Access it here.