All is fair in love and war. And if we are on the brink of a trade war, it looks like China is trying to show the U.S a little love. It was announced that China plans to cut tariffs for consumer item such as food, cosmetics, and other imports.
Breakdown of Tariffs
This is the newest focus in the ever-shifting stance on tariffs between the two nations. In fact, Reuters reports the East Asian country will cut taxes on a wide range of consumer items such as cosmetics, apparel, fitness products, and home appliances beginning July 1. Consequently, import tariffs for footwear, apparel, kitchen supplies, and headgear will be reduced to 7.1% from 15.9%.
Similarly, tariffs on appliances such as refrigerators and washing machines will be cut back to 8% from 20.5%. Import taxes on foods like aquaculture, fishing products, and mineral water have been slashed to 6.9% from 15.2%. Cosmetics and some medical and health products will be reduced to 2.9% from 8.4% percent. The Chinese government said the move will help increase competitiveness. Just recently, China also announced its intention to cut tariffs on autos from 25% to 15% come July 1st.
Also, back in December 2017, the East Asian giant reduced import duties on more than 200 consumer products when regulatory changes slashed import taxes to an average rate of 7.7% from 17.3%. Those cuts were on items ranging from food, pharmaceuticals, health supplements, and everything in-between.
Apparel is Spared
Previously, the apparel industry far and wide was in a tailspin on how tariffs were going to affect the sector. While we still are not out of the woods, this is a much better spot to be in. Although, the ever-changing stance on trade still leave some skeptical that this may soon change.
But, it seems as though this is an attempt by China to ease trade tensions with the United States over trade imbalance. So, this may actually stand the test of time. This sentiment is furthered by Fortune as they report that Beijing’s actions are an attempt to open the country’s massive market to foreigners. Regardless of the intentions of the Chinese government, however, the move will help calm tensions over trade. China and the U.S had meaningful discussions mid-May which ended with the Asian country agreeing to import more commodities from the U.S.
International organizations that have been seeking ways to tap into the Chinese market will do well out of the reduction in import tariffs since there are far less regulatory hurdles to deter them now.