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

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.

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