China to exempt tariffs on 696 US goods to support exports

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China to exempt tariffs on 696 US goods to support exports

On Tuesday, the 18th of February 2020, China’s Finance Ministry had issued a statement saying that Beijing would exempt 696 US goods from retaliatory tariffs amid a gruesome coronavirus outbreak as the epidemic-hit nation seemed to be seeking to fulfil its obligations made during the “Phase One” trade deal with the United States which in effect had put an end to an 18-month-long costlier tit-for-tat tariff battle.

Besides, Tuesday’s (February 18th) Beijing announcement came forth less than a week after the “Phase One” trade deal between the tariff war-struck nations’ had come in to effect as planned on February 14th, while the latest tariff exemptions from Beijing had been larger by far than its earlier initiatives.

In point of fact, as part of the “Phase One” trade deal with the United States, Beijing had pledged to purchase more than $200 billion worth of US products including farm goods and a tariff roll back for a number of US goods.

Nonetheless, adding that the Chinese buyers would unlikely to purchase US farm goods this year despite a tariff roll back, since Brazilian beans were still good options given the scale of cost-benefit ratio, a Chinese trader said followed by the reveal of Tuesday’s (February 18th) announcement, “Unless the state forcefully asks firms to apply for tariff exemption and buy U.S. soybeans, crushers would still go for Brazilian beans, based on market free will. ”