China cuts tariffs on $75B of US imports

BEIJING – China cut tariffs on $75 billion of U.S. imports including soybeans, pork and auto parts Thursday in a trade truce with Washington while Beijing struggles with a costly virus outbreak.

The cuts follow last month’s signing of a “Phase 1” agreement toward ending a long-running tariff war over Beijing’s technology ambitions and trade surplus. Both sides have made conciliatory gestures, but the lingering dispute threatens to chill global economic growth.

The reductions follow American tariff cuts last month on Chinese goods. There was no indication Beijing altered its own cuts in response to the rising cost of efforts to contain a virus outbreak that has depressed business activity by closing factories, restaurants and shops.

“The next steps depend on the development of the Chinese-U.S. economic and trade situation,” said a Ministry of Finance statement. “We hope to work with the United States toward the final elimination of all tariff increases.”

The tax rate on some 916 items including soybeans, pork and fish was cut from 10% to 5%, effective Feb. 14, the ministry said. The rate for 801 items including auto parts will be cut from 5% to 2.5%.

Washington hiked tariffs on Chinese goods in 2018 in response to Beijing’s multibillion-dollar trade surplus and complaints it steals or pressures companies to hand over technology. China retaliated by increasing duties on American goods.

Under the “Phase 1” deal in October, Washington canceled planned additional tariff hikes and Beijing committed to buy more U.S. farm exports.

However, most tariff hikes imposed previously by both sides are still in place.

CHINATOPIX VIA AP Workers watch a container ship arrive at a port in Qingdao in east China’s Shandong province Tuesday. China and the U.S. are in “Phase 1” of a trade agreement truce.