China weighs lifting tariffs on US goods to ease trade strain
Chinese authorities are considering suspending the 125 per cent tariffs on certain goods imported from the USA, according to sources familiar with the matter, as reported by Bloomberg. The decision is believed to be due to the economic burdens of the trade war, which are particularly affecting some industrial sectors.
In response to the escalation of the trade war, Beijing imposed tariffs of 125% on US goods. Even though the Americans had previously started making exceptions for electronics, the Chinese are now considering a similar approach. According to Bloomberg, Beijing is thinking about removing additional charges for medical equipment and certain chemicals used in industry, such as ethane.
China considers lifting selected tariffs
The same sources suggest that China also wants to remove tariffs on aircraft leasing. Many Chinese carriers lease their aircraft from external companies, and the added tariffs could severely impact their finances.
China is noted as the largest producer of plastics worldwide, yet some factories depend on ethane, mostly imported from the United States. China's Ministry of Finance and the local customs service have not commented on these reports. Bloomberg notes that the list of Chinese exemptions may still be in the discussion phase.
