China will allow exemptions on retaliatory tariffs imposed against 696 U.S. imports, the most substantial tariff cut to be offered so far, as Beijing seeks to meet promises made in its Phase 1 trade deal with the U.S.
Tuesday’s declaration comes after the interim trade deal between the two nations took effect on February 14 and is the third round of duties exemptions China has offered on the U.S. imports
China has committed to boosting its purchases of goods and services from the U.S. by $200 billion over two years as a part of the deal and has already pared some additional tariffs on U.S. imports after the interim agreement was signed.
The U.S. products eligible for tariff exemptions include vital agricultural and energy imports akin to beef, pork, soybeans, liquefied natural gas, and crude oil, which had been subject to additional tariffs slapped during the escalation of the bilateral trade war.
The coronavirus epidemic that emerged late last year in China has raised concerns about its ability to fulfill the purchasing targets. Authorities throughout the nation imposed major restrictions on travel and transportation to stop the spread of the coronavirus, which has killed almost 1,900 and infected over 70,000 in the nation.
The containment efforts have kept factories closed or operating with drastically reduced staff, affecting production. The general public has been discouraged from leaving their homes or visiting public places, also stunting consumption.
White House consultant Larry Kudlow mentioned earlier this month that Chinese Premier Xi Jinping told U.S. Prez Trump throughout a current call that China will still fulfill its interim trade deal purchasing targets.