China Extends Suspension of Additional Tariffs
Following the recent meeting between former US President Donald Trump and Chinese President Xi Jinping, China has announced that it will extend the suspension of additional tariffs on US goods. The country will keep suspending the extra 24 percent tariff for another year, aside from maintaining the existing 10 percent tariff. The new policy will be effective starting November 10.
The Results of the Trump-Jinping Meeting
The meeting between Trump and Xi Jinping held last month in South Korea was highly publicized around the world. Both leaders discussed a number of significant trade and policy issues. Trump characterized the discussion as “wonderful” and emphasized his belief that Xi Jinping would take action to restrict the transportation of raw materials used in producing fentanyl.
Tariff Reduction on Fentanyl-Linked Goods
Due to the negotiations, the 20 percent tariff on certain goods originating from China that were linked with the production of fentanyl has been cut to 10 percent. The move decreases the overall U.S. tariff rate on Chinese imports from 57 percent to 47 percent.
Agreements on Agricultural and Mineral Trade
At the meeting, Trump declared that China had agreed to the immediate resumption of purchases of American soybean products. The U.S. President said that the two countries had reached a common ground on rare earth minerals as well. Under the new deal, China will continue exporting these minerals to the United States without any disruption.
Prospects for a New Trade Agreement
Trump also sounded very positive about the future of trade relations with China, hinting that a formal trade deal may soon be inked. The decisions after this meeting represent a significant easing of tensions in trade between the two countries.
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