China Temporarily Suspends Taxes on Certain US Imports

China Temporarily Suspends Taxes on Certain US Imports

-China trade deal - which will almost double US exports to China over the next two years - is complete, aside from translation and routine text revisions.

China expressed cautious optimism Saturday about a first-step trade agreement that dials down a trade war it blames the USA for starting. He told CBS television that the deal was "totally done", although small changes to the wording are possible.

In addition, it includes a Chinese commitment to buy $200 billion more in US goods and services over two years, USTR said.

U.S. Trade Representative Robert Lighthizer testifies before a House Ways and Means Committee hearing in Washington on February 27, 2019.

The so-called phase one agreement announced Friday includes elements dealing with intellectual property protections, technology, currency and financial services. Other steps include opening the Chinese market to US financial businesses and a promise not to manipulate the value of China's money. China imported an unprecedented 11.18 million barrels a day in November, which surpassed the U.S. high-water mark of 10.77 million set in June 2005.

At a late night news conference in Beijing, timed to coincide with the USA morning, the officials said the United States would begin phasing out tariffs on Chinese imports, rather than continue to raise them.

China to increase imports from U.S.

He said the $50 billion in additional purchases of American agricultural products by China is spelled out in writing in the agreement.

The deal ultimately left 25% US tariffs on $250 billion worth of Chinese imports, limiting stock market gains on Friday. They also unveiled new commitments by the Chinese to buy United States farm goods and other products.

"It seems the market has now fully priced (in) the phase 1 trade agreement, so we are going to need further news if we are going to push through the important (technical) resistance that is just ahead", said Michael McCarthy, chief market strategist at CMC Markets.

Import dependency weighs similarly on China's leaders, who have leaned on state-owned energy giants such as PetroChina Co to boost domestic oil and gas output. He suggested that China might have to buy more soybeans than it needs to meet the terms of the agreement.

President George W Bush famously said "America is addicted to oil", and passed measures to curb demand, such as requiring corn ethanol be mixed into gasoline. The United States in August then laid out plans to introduce tariffs on $300 billion worth of Chinese imports over two tranches.

In exchange for the Chinese commitments, the Trump administration called off a new round of tariffs that was set to go into effect on Sunday.

"The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder", Trump tweeted over the weekend.

Other Chinese tariffs that had already been implemented on U.S. goods would be left in place, the commission said in a statement issued on the websites of government departments including China's finance ministry.

Trump then further increased existing tariffs on $250 billion worth of Chinese imports from 25% to 30% after the Chinese finance ministry enforced additional tariffs of 10% and 5%, respectively, on $75 billion worth of USA goods in two batches that were to start on September 1 and December 15.

Lower supply next year due to a planned cut by the Organization of the Petroleum of Exporting Countries (OPEC) and associated producers like Russian Federation - a grouping known as 'OPEC+' - and stronger economic growth expected because of the improved trade outlook between United States and China will combine to tighten the oil supply-demand balance next year, analysts from JP Morgan said.

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