In a remarkable step toward lessening trade tensions, China’s Ministry of Finance announced that tariffs on a wide range of US goods will be minimised starting 14th May. The current 34 per cent tariff imposed last month will be cut to 10 per cent for a 90-day period on Wednesday. Furthermore, the ministry affirmed that cancellation of an originally planned 91 per cent surcharge to be put in place in subsequent rounds.
This reduction in tariff marks a possible turning point in US-China trade relations, which have seen repeated retaliations of duties and disagreements in recent years.
“The momentous easing of bilateral tariffs between China and the US aligns with prospects of consumers and producers in both countries, and is favorable to trade and economic exchanges between these two countries and to the global economy,” the ministry noted.
The decision is anticipated to provide a wide range of benefits to a broad range of industries, including textiles. US exporters may realise a prominent boost in demand from Chinese markets, while Chinese manufacturers are expected to benefit from reduced import expenses, easing the damage on their profit margins.
Economists view this move as a significant sign ahead of impending trade talks between the world’s two largest economies. It may also infuse impetus into the global supply chain recovery, predominantly benefiting Asian and promising markets linked to the China-US trade network.
