BEIJING _ China will halve tariffs on some $75 billion of imports from the U.S. later this month, the Ministry of Finance said in a statement on Thursday.
The cut will be effective from 1:01 p.m. on Feb. 14, Beijing time, according to the statement. That is the same time as U.S. tariff cuts on Chinese products will be implemented. Chinese punitive tariffs on American goods from Sept. 1 last year will be lowered, with the rate on some cut to 5% from 10%, and the others to 2.5% from 5%.
Both nations said they would cut tariffs on the others' goods as part of the phase-one deal, which was signed last month. The world's two biggest economies paused their trade war in January, although even with these reductions tariffs are in effect on large parts of the bilateral trade and there are numerous other points of friction in the relationship.
Other retaliatory tariffs China has imposed on U.S. goods will remain, according to the statement. In the meantime, China will continue processing applications for tariff exemptions, it said.
"China hopes that both sides can comply with and implement the agreement to enhance market confidence, promote development of bilateral economic ties and facilitate global economic growth," according to the statement.
The yuan extended gains after news on the tariff reduction, with the offshore rate advancing as much as 0.25% to 6.9579 per dollar.
