Feb 7, 2020
China halves trade tariffs involving US fruit products

China is cutting in half tariffs on U.S. fruit and other goods imposed in September and December last year, but leaving in place larger tariffs imposed in 2018.

The Feb. 6 move by China is considered by industry watchers as a small first step in providing tariff relief for U.S. fruit and nut exporters. The cuts are effective Feb. 14.

On Feb. 6, the Chinese Office of the Tariff Commission of the State Council issued the following statement regarding the adjustment of tariffs on some imported goods originating from the United States.

“On Feb. 6, 2020, the State Council Customs Tariff Commission (hereinafter referred to as the Tax Commission) issued an announcement to adjust the tariff levy measures on approximately 75 billion U.S. dollars of imported goods originating in the United States, starting at 13:01 on Feb. 14, 2020.

Starting from September 1, 2019, the tax rate for products that have been levied 10% will be adjusted to 5%; the tax rate for products that have been levied 5% will be adjusted to 2.5%. In addition to the above measures, other tariff measures on the United States and Canada continue to be implemented in accordance with regulations. The elimination of tariffs on the United States and Canada continued. In this connection, the reporter interviewed the relevant person in charge of the Office of the Tax Commission.

The next step of adjustment depends on the development of the Sino-US economic and trade situation. We hope to work with the United States towards the ultimate elimination of all tariff increases.”

U.S. Department of Agriculture trade statistics show U.S. cherry exports to China in 2019 were $75 million, down 17% from 2018 and off 39% from 2017. U.S. citrus exports to China in 2019 were $23 million, off 56% from 2018 and down 54% from 2017.

The entire Chinese Office of the State Council Tariff Commission statement can be found here.

The U.S. – China ‘Phase One’ trade agreement signed Jan. 15 at the White House reportedly calls for China to buy $40 billion to $50 billion worth of U.S. agricultural products annually over the next two years. Courtesy photo


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