CNBC reported yesterday that China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year. The Chinese economy is slowing down, and lowering tariffs is seen as a way to bring back previous growth.
The article also notes:
- Next year, China will implement temporary import tariffs, which are lower than the most-favored-nation tariffs, on more than 850 products, the finance ministry said on Monday.
- That compared with 706 products that were taxed at temporary rates in 2019.
The article cites a few significant tariff cuts:
The finance ministry said the tariff rate for frozen pork will be cut to 8% from the most-favored-nation duty of 12%, as China copes to plug a huge supply gap after a severe pig disease decimated its hog herd.
…China will also lower temporary import tariffs for ferroniobium — used as an additive to high strength low alloy steel and stainless steel for oil and gas pipelines, cars and trucks — from 1% to zero in 2020 to support its high-tech development.
…The tariff rate for frozen avocado was cut to 7% from the most-favored-nation duty of 30%, the ministry said.
…Tariffs for some asthma and diabetes medications will be set at zero, the ministry said, while duties on some wood and paper products will be lowered too.
Import tariffs on multi-component semiconductors will be cut to zero.
China will also further lower most-favored-nation import tariffs on some information technology products from July 1, the ministry said.
China has long been an unfair trading partner–manipulating their currency, disregarding intellectual property, and generally behaving badly. Hopefully President Trump’s ‘trade war’ will bring some balance into our trade relationship with China.