China is slashing tariffs on $75 billion of U.S. goods. The change will go into effect on Feb. 14.
This comes after the two powerhouses signed a trade deal in January 2020. The deal promised increased U.S. agricultural exports and reforms to China’s policies on intellectual property, technology transfer, and financial services.
Beginning Feb. 14, more than 1,700 products will see lower tariffs. These include American cars, oil and gas, seafood, poultry, soybeans, and more. Some tariffs will fall from 10% to 5% while others will be cut from 5% to 2.5%.
In turn, the U.S. will reduce tariffs on $200 billion of Chinese goods.
China’s Ministry of Finance said the move was made to “advance the healthy and stable development of China-U.S. trade.”
With the coronavirus impacting China’s food supply, the trade deal writ large may be a silver lining for China.
China has agreed to spend $200 billion over the next two years on U.S. food, agriculture, and seafood products and other services. $32 billion will go towards American agricultural goods, which China could be in need of if coronavirus continues to hit the country hard.
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