China lifts more tariffs on US products after trade truce

Semi-trucks drive past shipping containers at the Port of Los Angeles. (Photo: Bloomberg)

Trying to mitigate shocks on all fronts, China on Friday (Feb. 21) lifted more retaliatory tariffs on imports of US industrial goods—effectively starting a truce to the fierce ‘trade war’ between the global superpowers.

Announcements by both countries were welcomed by financial markets globally, despite few concrete solutions to resolve the nearly two-year conflict.

According to China’s Finance Ministry, goods affected by the latest reduction include industrial components and medical and factory equipment.

The ministry, however, gave no details of the value of goods affected but said penalties were suspended for a year, effective next Friday (Feb. 28).

Under their “Phase 1” agreement signed in January, Washington agreed to cancel additional tariff hikes and Beijing committed to buy more American farm exports. US officials said China also committed to addressing complaints about its technology policies.

Last week, the Trump administration reduced penalties on some Chinese imports.

In an earlier tariff cut, China announced on Thursday, February 6, it would reduce duties on US$75 billion of goods as part of the trade truce with Washington.