published that it will cut taxes on several US products that are currently
worth approximately $75 billion.
According to a
report from China’s Ministry of Finance, the taxes on some of these US products
will be decreased from 10% to 5%, and from 5% to 2.5%. The changes will start
on Feb. 14.
The reductions will
apply to approximately $75 billion worth of imports from the United States that
were struck with charges almost a year ago.
reductions, tariffs on U.S. crude will also be lowered to 2.5%, from 5%.
According to a
report on the website of the Ministry of Finance, the country proceeds with
this decision to “advance the healthy and stable development of China-US
trade.” Another report on the website stated that the reduction in taxes was in
line with a US arrangement in January to cut taxes on 14 February on $120
billion of Chinese assets — from 15% to 7.5%.
that the next settlement will take place if there is a positive development on
US-China trade relations, continuing that the country wishes to work with the US
to eliminate all tariff hikes.
China and the US
have forced taxes on billions of dollars’ worth of each other’s products in
their trade dispute that began more than 12 months. Nevertheless, both the U.S
and China entered in a phase one trade deal last month, which prevented any
Markets surged following the news. Mainland Chinese stocks rose by more than 2%, as well as the Hong Kong markets. The Chinese yuan increased as well. One analyst stated that this improvement could be a hint that China is now able to move past the so-called phase-one trade deal. Japan's shares rose nearly 3%.