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China Plans to Halve American Goods Tariffs

Global stocks extended their recovery following encouraging economic data and after China announced a cut in tariffs on some imported goods from the United States - Photo: Special

JAKARTA (TheInsiderStories) – Global stocks extended their recovery following encouraging economic data and after China announced a cut in tariffs on some imported goods from the United States (US). The second world’ largest economy said will halve some American goods tariffs to improve the second phase of trade deal.

The two countries signed off on an interim deal last month. In an official statement released today (02/06), China’ finance ministry said it would lower tariffs on some goods from 5 to 2.5 percent and cut those on others from 10 to 5 percent starting Feb. 14.

The tariff relief added to hopes the global economy may be able to avoid a major shock from China’ rapidly-spreading coronavirus, which has battered financial markets in recent weeks. As reported, the world’ two biggest economies reached a phase one trade deal in December, and Trump dropped plans to extend the tariffs to another US$160 billion in Chinese goods.

Earlier, US commerce department reported, the country’ trade deficit fell 1.7 percent to $616.8 billion for the first time in six years period as President Donald Trump hammered China with import taxes. The office said, US exports fell 0.1 percent to $2.5 trillion and imports slipping 0.4 percent to $3.1 trillion.

The deficit with China also narrowed by 17.6 percent to $345.6 billion. As known, Trump has imposed tariffs on $360 billion worth of Chinese imports in a battle over Beijing’ aggressive drive to challenge American technological dominance.

The office also reported trade gap with Mexico rose 26.2 percent to a record $101.8 billion in the same year. The goods deficit with the European Union also hit a record, $177.9 billion — up 5.5 percent from 2018.

Overall, the US posted a $866 billion deficit in the trade of goods such as cars and appliances, down from $887.3 billion in 2018. But it ran a $249.2 billion surplus in the trade of services such as tourism and banking, down from $260 billion in 2018.

In December, the overall trade gap widened 11.9 percent to $48.9 billion as exports rose 0.8 percent to $209.6 billion and imports climbed 2.7 percent to $258.5 billion.

– AP and Reuters contributed to this story

by Linda Silaen, Email: linda.silaen@theinsiderstories.com