China has reduced its taxes on $75 billion worth of American imports that include high-demand items like pork, soybeans, and car parts Thursday, as part of a complicated economic truce with the US.
The tariff cuts follow the approval of a Phase 1 deal signed in January this year toward putting closure on a long-running trade drama over China's technological pursuits as well as mounting trade surplus. Both Beijing and Washington have made peace-making gestures but their continuing discord stills imperils global trade growth.
According to the State Council Tariff Commission, the cut would include levies of five percent and 10 percent on more than 1,700 items in September.
Items that were affected by tariffs of 10 percent included poultry, fresh seafood, and soybeans. Tariffs also covered products like tungsten lamps for scientific and medical purposes, as well as some aircraft types.
The cuts also follow US tariff reductions on Chinese farm products, last month. There was no clear sign yet that Beijing changed its own tax measures as a reaction to the ballooning cost of efforts to revive China's sagging economy.
Washington canceled an expected further tariff hike under the Phase 1 agreement in October and Beijing committed to purchasing more US farm goods. However, a large portion of the tariff hikes previously levied on trillions of dollars of each other's products by both sides remains in place.
The State Council Commission said it hopes that both sides will be able to stick to their agreement, exert further efforts to carry out its fundamental content, and strengthen investor confidence.
China and the United States' tentative agreement dialed up in their grinding economic showdown, with Beijing promising over the next two years to buy an estimated $200 billion in American goods.
At this week's annual State of the Union address given by President Donald Trump, he said ties between China and the US are the "best" ever at the moment.
China's finance officials disclosed in a statement that tax cuts for the relevant products, which were initially announced on September 1, will take effect from on February 14.
As this developed, Asian stocks were up early Thursday, buoyed by record closures in Wall Street after encouraging economic data, and after China announced its tariff cut on some imported US goods.
US stock futures made a strong climb of 0.5 percent, while China's onshore yuan advanced 0.2 percent to its highest mark since January 23, following the announcement of the cuts.
