China has done away with tariffs on the US agricultural products after Washington decided to reduce its fentanyl-linked tariffs on Chinese products.
On Wednesday, November 5, China’s Ministry of Finance confirmed that the east Asian nation will halt tariffs imposed with effect from (w.e.f) March 4 on soybeans and American agricultural products like corn, wheat, sorghum and chicken.
This reversal of tariff imposition by China will come into effect from Monday at 1:01 PM after the US President Donald Trump inked executive orders reducing fentanyl-related levies on Chinese exports to 10% from November 10, and continued a truce bringing down the reciprocal US tariff rate within 34% to 10%.
This positive global cue comes after favourable talks were held on the sidelines of APEC Summit held in South Korea between Xi and Trump, ending the tariff-for-a-tariff war between China, and the US.
China-based buyers had avoided purchasing US soybeans as tensions between the two sides soured, taking more from South American producers.
However, days before the meeting, China bought its first US cargoes, and continued with further purchases after the Trump-Xi meet. That trade was worth above $12 billion last year.
“The halting of certain tariffs between China and the US aligns with the fundamental interests of both countries and their people,” the notice said.
It “meets the expectations of the international community and will help push bilateral economic and trade relations to a higher level.”
China’s Finance Ministry confirmed in a separate notice Wednesday that the 24% tariff on US products will be suspended for a year, mirroring Trump’s executive order. The Chinese suspension will kick in 1:01 pm on Monday, when a previous deadline expires.