China Extends Olive Branch, Cuts Tariffs

China Extends Olive Branch, Cuts Tariffs

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.

 

Easing Tensions 

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.


Author:  Christine Duff

Christine wants to live in a world filled with cutting edge fashion, beautiful words and and an endless supply of leather jackets and boots. A product development grad of FIDM, she was the Editor-in-Chief of MODE Magazine where she reignited her love of storytelling. She has diverse experience within the industry with trend research, art direction and styling editorial spreads. She gained her most notable experience working in Los Angeles at the satellite operation for GQ and Vogue Thailand. Christine is passionate about social science and the role it plays in the consumer goods industry and apparel in particular.


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