China has declared its first slot of tariff relief for as many as 16 kinds of US products, days before a scheduled between trade officials from both sides to meet and discuss diminishing plans for constantly tariff hassle.
The tariff dispensation includes few anti-cancer drugs and medications, animal feed products and fish meal among the other US products as per the statement released by the Ministry of Finance on its website.
China had in May declared that a waiver program was being planned amidst rising tensions over the constant hike in the cost of prolonged trade war burdening the already decelerating economy
ING’s Greater China economist Iris Pang wrote a note that analyzed, “ The exemption can be viewed as a gesture of sincerity toward the US ahead of planned negotiations next month but is largely only a way to support the slowing economy. Upcoming Trade talks still hold a lot of uncertainties and releasing 16 US products from a tariff will not affect China’s stance.”
The exempted US products fail to counter 5000 types of US items that are still conditioned to China’s add over tariffs. However key imports of the US that include soybeans and pork are still dependent on massive additional tariffs since China elevated imports from other suppliers including Brazil.
Beijing has announced that it will consider tariff relief for some US items in case they aren’t easily available from other supplying countries. The US stands as China’s biggest supplier of what, which contributes as a key ingredient in pig food and is hard to substitute in bulk from other suppliers.
China has placed various circles of tariff on US items in response to opposing US section 301 tariffs that began last year in the month of July that imposed 25% of heavy-duty on almost 50 billion dollars US imports.
Two of the world’s most gigantic economies have chosen the path of counterstroke duties on products worth more than hundreds of billions of dollars in the ongoing trade war that has been going on for over a year now and has triggered a global recession.