Trump Deal With China Sees $60 Million In Tariff Cuts
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The United States and China are lowering tariffs on a wide range of goods as part of a new trade deal, affecting everyday products, food and agricultural goods.
For U.S. imports from China, the list includes 77 products, including fireworks, plates and kitchenware, blankets and rugs, toys, sporting equipment, flashlights and microwave ovens.
China’s list of U.S. imports is much broader, covering 1,619 products. Those include livestock, frozen pork and chicken, salmon, peanuts and peanut butter, apples, whiskey, soybeans and soybean products.
Both countries are cutting $30 million in tariffs.
The U.S. and China are planning to reduce tariffs on $30 billion worth of goods from each country, according to government announcements from both sides Monday.
The detailed lists includes mostly imports of toys, sports equipment and Christmas decorations by the U.S., while American agricultural products accounted for much of the far longer list of imports by China.
Washington has sought to reduce its record trade deficit with Beijing, as the Asian country exports far more to the U.S. than it imports. U.S. goods trade deficit with China was more than $202 billion last year.
“If we see the tariff cuts actually implemented before the holiday season, it could provide a welcome boost to U.S. consumption and to retailers,” said Jacob Cooke, CEO at WPIC.
A major part of the deal is surrounding agricultural goods.
Soybeans will still face a 10% tariff.
China is set to cut tariffs on a broad range of US agricultural goods, from corn and wheat to meat and dairy, but top import item soybeans were excluded from a tariff-reduction list jointly issued by China’s commerce ministry and the White House.
Markets have been waiting for news on Chinese tariff cuts on U.S. farm goods following last week’s Washington summit of leaders Xi Jinping and Donald Trump.
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The list covers sorghum, vegetable oils and meals, including soyoil and soymeal, along with meat, dairy products and other items.
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US soybeans, however, still face an additional tariff of 10%, which traders have warned is too high for private crushers to absorb, even as Chinese state buyers have stepped up purchases.
Another great deal!
