(Nov 5): China has halted retaliatory tariffs that it imposed on a range of US agricultural products, after Washington halved its fentanyl-related levies on Chinese goods.
The country’s Ministry of Finance confirmed in a notice on Wednesday that it will suspend all tariffs imposed March 4 on soybeans and other US agricultural products including corn, wheat, sorghum and chicken. The move was previously flagged in a White House fact sheet.
The cancellation — to take effect Nov 10 — comes hours after US President Donald Trump signed a pair of executive orders. They formalised slashing fentanyl-related levies on Chinese exports to 10% and bringing down the reciprocal US tariff rate from 34% to 10%.
The moves are part of a broader trade pact between Trump and Chinese leader Xi Jinping that’s set to last one year, and has at least temporarily stabilised what had been a turbulent relationship. Before their summit in South Korea last week, the two leaders had been locked in a cycle of actions and retaliations on trade.
The detente has boosted optimism about a revival in agricultural trade between the two nations, helping to push up global grain prices. Chicago soybean futures rose as much as 1% in Asian hours on Wednesday.
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Chinese buyers had shunned American soybeans as tensions between the two sides soured, taking more from South America. The Asian nation bought its first US cargoes this season just days before the summit in South Korea, and then made further purchases after the meeting. China bought more than US$12 billion of American soybeans last year.
However, US soybeans are still likely to face a 13% Chinese import duty even after the tariff reduction, according to traders.
Beijing is also removing an additional 15% retaliatory levy on US wheat, according to the Finance Ministry notice. A major Chinese buyer is currently seeking a shipment of the grain from the US, which would be purchased by the Asian nation in more than a year.
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“The halting of certain tariffs between China and the US aligns with the fundamental interests of both countries and their people,” the ministry said in the notice. It “meets the expectations of the international community and will help push bilateral economic and trade relations to a higher level.”
The Chinese ministry confirmed in a separate notice on Wednesday that the 24% tariff on all US products will be suspended for a year, mirroring Trump’s executive order. The Chinese suspension will kick in at 1:01pm in Beijing on Monday.
Uploaded by Liza Shireen Koshy
