After the first phase of the U.S. trade deal with China was signed last month, China’s Ministry of Finance said Thursday it will be cutting the additional tariffs it had imposed last year on roughly $75 billion worth of U.S. imports by five percent.
The additional 10 percent tariff placed on some goods will be cut to 5 percent; the additional 5 percent tariff imposed on other goods will be cut to 2.5 percent. These additional tariffs were levied on U.S. goods during the height of the trade war in September and again in December.
Overall, 1,700 U.S. products being exported to China will be affected. The cuts are expected to go into effect Feb. 14.
The products impacted by the additional 10 percent tariff include some American automobiles, beef, poultry and soybeans. Chinese tariffs on U.S. soybean products, for example, were initially 25 percent, which increased to 30 percent in September.
After Feb. 14, Chinese tariffs on U.S. soybean products will be 27.5 percent.
Similarly, Chinese tariffs on imported U.S. pork products totaled 60 percent; after Feb. 14 this will drop to 55 percent. Beef tariffs will also drop from 35 to 30 percent.
The additional 5 percent tariff imposed on U.S. crude oil last December will drop to 2.5 percent.
China’s Ministry of Finance said the decrease was an effort “to promote the healthy and stable development” of economic and trade relations between the U.S. and China.
The phase 1 agreement also includes China’s pledge to make “substantial purchases” of American manufacturing goods, agricultural products, energy products and services throughout 2020 and 2021.
The U.S. will also reduce tariffs on Chinese imports on Feb. 14. On Jan. 16, the U.S. announced it would decrease the additional 15 percent tariff it had initially imposed last year on $120 billion worth of Chinese goods by half – to 7.5 percent.