Due to the deadly outbreak of coronavirus, China plans to reduce the good import tariffs. The goods get imported from the US. Following this, the Chinese officials announced the tariff cut from 10% to 5 % and other goods tariff from 5% to 2.5%.
Both the countries are on trade war due to tariffs applied to import products. But last month both the countries came down to a settlement where Chine assured the US to increase the import of goods by $200bn. And, thus, the new tariff reduction announcement is part of the settlement.
Moreover, the virus outbreak has to lead to derailing China’s economy. This also lead to all the factories and manufacturing sector shut down facing production drop.
The tariff cut will begin from Feb 14 covering $75bn of US goods. But tariffs remain $35bn worth of US goods. Also, as a part of the agreement, some Chinese good’s tariffs will be rolled back.
Due to this tariff cut, there is a huge chance of US-China trade war being resolved. Talking about this, China’s finance minister spoke. He states that the main aim is to promote stable development and healthy economic and trade Sino-U.S relations.
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