As part of Phase 1 trade deal signed with the US last month, China has announced that it will halve import tariffs on 1,700 US goods effective February 14. It means China will halve additional tariffs on $75 billion worth of US imports. The decision will help China in reviving its economy which is being affected due to the outbreak of Coronavirus attack.

Beijing also adjourned tariffs on some US imports that can be used for treating patients. As per the announcement by the Chinese finance ministry, the new decision would cut tariffs to 5 per cent from 10 per cent previously on some products, and from 5 per cent to 2.5 per cent on some other products. The aim is “to promote the healthy and stable development of Sino-US economic and trade relations,” the ministry said.

“China hopes that both sides will abide by bilateral agreements and try to implement relevant provisions so that we can boost market confidence, promote bilateral trade relations and global economic growth,” the statement said in the context of the ongoing US-China trade war.

The Phase 1 agreement signed in January, includes pledges from China to import an additional $200 billion worth of US products over two years, above the levels purchased in 2017, including an additional $32 billion in agricultural goods. It also includes pledges to improve protections of US intellectual property. The US has pledged to slash in half tariffs of 15 per cent that were imposed on about $120 billion worth of Chinese consumer goods.