China plans import tariff cuts as soon as October

BEIJING: China plans to reduce the average tariff rate on imports from most of its trading partners as soon as October, Bloomberg News reported yesterday.

In July, China cut import tariffs on almost 1,500 consumer products ranging from cosmetics to home appliances as part of efforts to open up its economy, the world’s second biggest.

The move was in line with Beijing’s pledge to its trading partners – including the US – that it would take measures to further increase imports.

The Bloomberg report did not specify the countries that could enjoy lower Chinese tariffs.

At the World Economic Forum in the northern port city of Tianjin, Chinese Premier Li Keqiang said on Wednesday that the government will continue to lower import tariffs on some goods. He did not elaborate.

The promise to further lower import tariffs came as China and the United Stated remained locked in a bitter trade dispute that has roiled financial markets and cast uncertainty over global supply chains.

On Tuesday, China added US$60 billion of US products to its import tariff list in retaliation for US President Donald Trump’s planned levies on US$200 billion of Chinese goods. The trade war has started to hit Chinese cities and provinces, especially those that depend on US order books.

While the direct economic impact of the dispute on China has so far been limited, the trade tensions could rapidly push Chinese exporters to switch away from the US market, a former chief of China’s central bank said on Wednesday. — Reuters

As President Donald Trump continues to ratchet up the trade war with China, items such as washing machines and other household appliances that are overwhelmingly produced in China could see huge mark-ups in price. — AFP photo