Global Markets

China halves tariffs on more than 1,700 US imports, as coronavirus spreads

On Thursday, China announced that it will halve additional tariffs on $75billion worth of US imports, as the world´s two biggest powerhouses continue to resolve the trade war that has long affected the countries´ economies and global growth.

This move follows the signing of a Phase 1 deal that previously settled tensions between the world´s largest economies and introduced a truce between the two.

A partial resolution was negotiated last month as China promised to increase imported US products by $200billion.

China´s finance ministry revealed that 1,717 goods would be impacted and tariffs on some would be reduced from 10% to 5%, and others would be cut from 5% to 2.5%.

Chinese officials haven´t yet confirmed the value of goods that will be impacted by the decision, although the imports that will be benefitted from the new tariffs are part of the $75billion of products that China announced would be affected that came into effect 1 September 2019.

The latest announcement also reflects US commitment to the deal, however, it is also seen by experts as a strategy by Beijing to increase confidence amid the current virus epidemic that has negatively affected the country´s investment sector.

China´s economy has come under additional pressure recently as the coronavirus continues to spread and threaten the economy. Factories and high-profile companies continue to remain closed in an attempt to contain the outbreak, causing a drop in its manufacturing sector´s production.