China slashes tariffs on $75 billion worth of US goods including soybeans and cars

China on Thursday announced it would reduce tariffs on thousands of American products, signaling intentions to implement an interim trade agreement with the US as a costly virus epidemic escalated. Retaliatory tariffs will be reduced on $75 billion worth of US products, including soybeans, oil, and automobiles, beginning February 14, China's finance ministry said. Some of those imports will face tariffs of 2.5% to 5%, as opposed to the 5% to 10% rates imposed in September and December. "The next steps depend on the development of the Chinese-US economic and trade situation," the finance ministry said in a statement. "We hope to work with the United States toward the final elimination of all tariff increases." Under the phase-one trade agreement, China agreed to tighten its intellectual-property rules and purchase $200 billion worth of US products over two years, ambitious stipulations that experts had questioned. Tariffs remain on thousands of other products from the US and China, which plan to continue negotiating a broader economic agreement in the coming months...MORE

And from China’s tariff cuts include fruits, nuts

China is cutting in half tariffs on U.S. fruit and other goods imposed in September and December last year, but leaving in place heftier tariffs imposed in 2018. The Feb. 6 move by China is a small first step in providing tariff relief for U.S. fruit and nut exporters, industry leaders said. The cuts are effective Feb. 14. Mark Powers, president of the Northwest Horticultural Council, said in an e-mail that no specific tariff reductions have been confirmed by the U.S. government. However, Powers said initial reports point to a 5% reduction in tariffs on U.S. fruits and nuts. “That small reduction – from 60%- will not be of much help to fruit exporters,” Powers said in an e-mail. China’s announcement of a reduction in tariffs on $75 billion of U.S. goods appears to structured to cut in half tariffs that China imposed in September and December (from 10% to 5% and from 5% to 2.5%), said Richard Owen, vice president of global membership and engagement for the Produce Marketing Association. Fruit and nuts from the U.S. were included in those September and December rounds, he said, so the cuts could help U.S. suppliers be more competitive again in the China market.On Sept. 1 last year, U.S. apples, pears, citrus, cherries and other fruit were subject to an additional 10% tariffs, adding to the 40% retaliatory tariff imposed by China in July 2018. U.S. exports have suffered under the weight of the tariffs. U.S. Department of Agriculture trade statistics show U.S. cherry exports to China in 2019 were $75 million, down 17% from 2018 and off 39% from 2017. U.S. citrus exports to China in 2019 were $23 million, off 56% from 2018 and down 54% from 2017...