After US President Donald Trump announced phase-one China trade deal, scrapping penalty tariffs, on December 13, China reciprocated to it by suspending additional tariffs on some US goods that were set to be implemented from December 15. China’s State Council Customs Tariff Commission, in a statement, said that the decision was taken in order to implement the results of the recent consultations between China and the United States on economic and trade issues.
The now-suspended retaliatory tariffs were meant to target several imported products including vehicles and auto parts originating from the US. The department clarified that the other already implemented tariffs against the US and Canada will remain in place ‘in accordance with regulations’.
“China hopes to work with the United States on the basis of equality and mutual respect to properly resolve each other's core concerns and promote the stable development of Sino-US economic and trade relations,” said the Commission.
Earlier, Trump took to Twitter to inform that China, during the phase-one deal, agreed to many “structural changes” and “massive purchases” of agricultural product, energy, and manufactured goods, among others.
.....The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!— Donald J. Trump (@realDonaldTrump) December 13, 2019
The US trade representatives also confirmed the ‘historic and enforceable agreement’ with China on Phase One trade deal. It said that the US will be maintaining 25 per cent tariffs on approximately $250 billion of Chinese imports, along with 7.5 per cent tariffs on approximately $120 billion of Chinese imports.
“President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the U.S.-China trade relationship. This unprecedented agreement accomplishes those very significant goals and would not have been possible without the President’s strong leadership,” said United States Trade Representative Robert Lighthizer.