Tariff waived for some U.S. shipments
BEIJING China on Friday confirmed that it will waive import tariffs for some soybeans and pork shipments from the United States, as the two sides try to thrash out a broader agreement to defuse their protracted trade war.
The tariff waivers were based on applications by individual companies, the finance ministry said in a statement, citing a decision by the country’s cabinet without specifying the quantities involved.
Several industry sources in the U.S. and China interpreted the announcement as official confirmation of duty exemptions on up to 10 million tonnes of soybeans and an unknown volume of pork.
“There’s nothing that’s saying this is some big addition to what’s been out there,” said Matt Wiegand, commodity broker for Futuresone in Lincoln, Neb.
China had imposed levies in response to tariffs launched by Washington over allegations that China steals and forces the transfer of American intellectual property to Chinese firms. Tariffs on U.S. soy imports are 33 per cent while levies on pork are up to 72 per cent.
Importers with duty-free quotas have been required to pay the tariffs and later apply for refunds, a process that traders said caused delays in unloading shipments. Friday’s announcement appeared to remove that step, sources said.
The announcement did not trigger new U.S. soy purchases on Friday, three U.S. soybean exporters said, although soybean and hog futures firmed on the news.
The waivers come amid talks to end a “phase one” deal to de-escalate a 17-month trade war that has roiled markets, disrupted supply chains and weighed on growth.
Though the U.S. struck an upbeat tone on progress in talks on Thursday, a new round of U.S. tariffs covering about US$156 billion of Chinese imports is set to kick in just over a week on Dec. 15.
“The goal (of this move) is to expand purchases and reassure the United States,” said a Chinese source who advises Beijing but declined to be identified because of the sensitivity of the matter.