China, extended 24% additional tariffs on US goods

China extended the suspension of additional 24% tariffs on imports of US goods for one year, keeping the general 10% rate in place, effective 10 November. According to a statement published on the Ministry of Finance website, 'for one year the 24% tariffs on US goods will continue to be suspended, (and) a 10% tariff on US goods will remain'. At the same time, in line with "the consensus reached in economic and trade consultations" and the truce reached by Presidents Trump and Xi, Beijing said it would lift tariffs of up to 15% on some US agricultural goods, including soybeans.

China has suspended retaliatory tariffs imposed on a number of US agricultural products after Washington officially halved to 10% its tariffs on fentanyl, of which the Dragon is the world leader in precursor production. The Ministry of Finance made it clear that it will suspend all tariffs imposed on soybeans and other star-studded agricultural and livestock products, including corn, wheat, sorghum and chicken, on 4 March. Chinese President Xi Jinping and US President Donald Trump held talks in South Korea in late October on the sidelines of the Apec forum, effectively extending a precarious truce for a year after several rounds of trade talks in recent months.

On Tuesday, Trump formalised the agreement under which Washington would reduce its additional tariffs on Chinese imports from 20 per cent to 10 per cent, also starting on 10 November. This year, tensions between Washington and Beijing over trade surged with triple-digit reciprocal tariffs, laying the groundwork for a bilateral trade freeze. Since then, the two countries have engaged in a truce, with their respective economic teams meeting several times in recent months despite rising tensions over export controls and other issues.