China suspends planned tariffs on US goods

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Treasury Secretary Steven Mnuchin denied a report that it could include provisions to roll back more levies on China after the vote. Representational image: iStock.

Beijing suspended additional tariffs on US products that had been due to kick in on Sunday(December 15), after Washington and Beijing announced a major thaw in their trade war on Friday(December 13).

China will suspend the planned addition of 10 percent and 5 percent tariffs on some US imports, and “continue to suspend additional tariffs on US-made autos and spare parts”, China’s finance ministry announced.

The move follows US President Trump’s cancellation of new tariffs on Chinese products as part of a “phase one” trade deal.

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China’s commerce ministry said on Friday that it had agreed with the US on a mini-deal that includes a progressive rollback of tariffs and the protection of intellectual property rights.

The two sides have yet to sign the agreement, which represents a major breakthrough in the 21-month standoff between the world’s two largest economies.

In addition to existing tariffs, Trump had previously threatened to impose a 15 percent levy on Sunday on around $160 billion of Chinese exports, including popular US consumer goods like electronics and clothing.

China had said it would respond with a 25 percent tariff on US autos and a five percent tariff on auto parts -levies that were suspended earlier this year as a goodwill gesture.

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