The China Customs Tariff Commission issued a notice on 6 February 2020 stating that China will halve the additional tariffs on US$75 billion worth of some US products as of 14 February 2020 in a bid to promote the stable development of China-US economic and trade relations.
This decision will halve the 10% and 5% rates on a list of US products that were subject to additional tariffs from 1 September 2019.
The tariffs for 270 items listed in the first section and 646 items in the second section of Annex 1 to the Notice was adjusted to 5% from 10% and for the 64 items listed in the third section along with 737 items in the fourth section had tariffs adjusted to 2.5% from 5%.
Apart from the above-mentioned adjustment, the other measures to additional tariffs on U.S. products will continue to be implemented.
The tariff rates on most of the logs and sawnwood imported from the US have been reduced to 5% from 10%.
The tariffs on poplar sawnwood and other North America sawn hardwoods have been cut to 2.5% from 5%.
The tariff rates on most imported wood-based panels, wood crafts and furniture have been halved to 2.5% from 5%. In addition, tariffs on most of the imported woodworking machinery, woodworking tools, agroforestry tools and forestry machinery from the United States will be halved to 2.5% from 5%.
Analysts write “this move is good for timber traders, wood processors and furniture manufacturers who have been suffering from trade conflict and also disrupted production and trade due to the coronavirus control measures.
Further adjustment will mainly depend on future development in the economic and trade relations between the two countries. The commission said other additional tariff measures will continue to be implemented as stipulated and they will continue to work on tariff exemptions for imports from the US.