The U.S. is granting tariff relief on Chinese imports now that the historic phase one trade deal with Beijing is complete.
The levy on $120 billion of Chinese goods will be lowered to 7.5 percent from 15 percent starting at 12:01 a.m. on Feb. 14, the U.S. Trade Representative said Thursday, providing a timetable for plans disclosed in December. Washington will keep duties of 25 percent on about $250 billion of China-made products.
“I’m leaving them on because otherwise, we have no cards to negotiate with,” President Trump said at a signing ceremony for the trade agreement at the White House. The pact cools a trade war between the world's two largest economies that economists warned was driving up supply costs for businesses, undercutting the benefits of Trump's tax cuts and deregulation efforts.
As part of the agreement, China will buy an additional $200 billion of U.S. goods over the next two years, in addition to making reforms in the areas of intellectual property theft, financial services and currency exchange.