China Plans to exempt Agricultural Products
China Plans to exempt Agricultural Products
Additional Tariffs may be Exempt on Some Products
On December 6, 2019, China announced it plans to exempt some agricultural products from additional tariffs on U.S. exports. These products include soybeans and pork, a very large percentage of U.S. exports into China.
According to Reuters.com, “China had imposed three rounds of additional tariffs on U.S. pork, including 25% increases in April and July 2018 and a 10% bump this month, raising the total duty from 12% to 72%. For soybeans, additional tariffs of 25% in July 2018 and 5% this month lifted the total duty from 3% to 33%. It was not immediately clear if some or all of the additional tariffs would be suspended.”
Section 301 List 4b Additional Tariffs
At this point, there is still indication that The United States plans to impose an additional tariff of 15% on Chinese imports listed on Section 301 List 4b on December 15, 2019. These tariffs will hit a value of $160 billion on Chinese goods. China agreed to purchase up to $50 billion dollars worth of U.S. farm goods within two years if the U.S. pulled back the tariffs, however it looks like China is already moving forward with its gesture, and some Chinese companies have already “imported certain quantities of goods from the United States.”
Trade Deal Still in the Works
Reuters also states, “Trump said on Thursday he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact.” The two sides are still working on a “Phase One” agreement of some kind.
According to the South China Morning Post, “U.S. officials have said the latest tariff increase will come into force on December 15 if there is no progress in the negotiations, and Beijing said China would respond if Washington imposed fresh duties on its goods.”
