World

China delays planned tariffs on US items

By AAP Newswire

China will postpone planned 25 per cent tariffs on 16 products from the United States by a year, after the US announced a two-week delay in tariffs on Chinese imports.

China's Customs Tariff Commission of the State Council said on Wednesday the tariffs, which were scheduled to come into force on Tuesday, will now take effect on September 16, 2020.

The announcement affects items including fishmeal, some lubricants and raw materials used in cancer drugs, however, tariffs on soybeans, pork and automobile imports will remain, the commission said in a statement.

It said it will continue to work on the exclusion of additional tariffs on US products and release the list of the excluded items in due course.

Washington announced on Wednesday it will postpone the planned 5 per cent tariff increase on $US250 billion worth of Chinese goods by two weeks to October 15 as a gesture of goodwill towards Beijing on the 70th anniversary of the founding of the people's republic.

"At the request of the Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25 per cent to 30 per cent), from October 1st to October 15th," US President Donald Trump wrote on Twitter.

By mid-October, the US and China will have held their 13th round of trade negotiations.

On September 1, the latest episode in the ongoing trade war between the two superpowers saw the US implement a 5 per cent tariff increase - to 15 percent - on Chinese imports worth $112 billion.

Washington is set to raise to 15 per cent the duties on the remaining goods from China that are still taxed at 10 per cent, reaching $300 billion worth of Chinese products in total, on December 15.

The geopolitical rivals' ongoing dispute is creating global consequences that go far beyond their bilateral relations.

In July, the International Monetary Fund revised its latest forecast on global economic growth for the year downwards to 3.2 per cent, 0.1 per cent lower that it had predicted in April, due to the global economic ripples generated by the trade war.