Advertisement

China postpones tariffs on U.S. goods after striking interim trade deal

China trade deal ‘totally done’: U.S. trade rep
WATCH ABOVE: China trade deal 'totally done': U.S. trade rep

China’s government says it will postpone planned punitive tariffs on U.S.-made automobiles and other goods following an interim trade deal with Washington.

Sunday’s announcement came after Washington agreed to postpone a planned tariff hike on $160 billion of Chinese goods and to cut in half penalties that already were imposed.

READ MORE: Trump says U.S. and China have reached Phase 1 of trade deal

“China hopes to work with the United States on the basis of equality and mutual respect to properly address each other’s core concerns and promote the stable development of Chinese-U.S. economic and trade relations,” said a Cabinet statement.

U.S. Trade Representative Robert Lighthizer said that under Friday’s agreement, China committed to buy $40 billion of American farm products over the next two years. He said China also promised to end its long-standing practice of pressuring companies to hand over their technology as a condition of market access.

Story continues below advertisement
Trump says tariffs on China will remain to get Phase 2 of trade deal done, says USMCA will pass soon
Trump says tariffs on China will remain to get Phase 2 of trade deal done, says USMCA will pass soon

Beijing had planned to impose 25 per cent duties on American-made autos on Sunday, which would have raised the total charge to 40 per cent. Hardest hit were Germany’s BMW AG and Daimler AG’s Mercedes unit, which ship U.S.-made SUVs and other cars to China.

Other goods were targeted for 10 per cent and 5 per cent penalties.

Trump says tariffs on China will remain to get Phase 2 of trade deal done, says USMCA will pass soon
Trump says tariffs on China will remain to get Phase 2 of trade deal done, says USMCA will pass soon