China rethinks US tariffs to ease economic strain
Chinese authorities are considering suspending the 125 percent tariff on certain goods imported from the U.S., according to individuals familiar with the matter, as reported by Bloomberg. This decision is being driven by the economic costs of the trade war, which heavily impact specific industries.
In response to the escalation of the trade war, Beijing imposed a 125 percent tariff on U.S. goods. While Americans had previously started creating exceptions for electronics, the Chinese are now considering a similar move. Bloomberg reports that Beijing is considering removing additional fees for medical equipment and certain chemicals used in industry, such as ethane.
China considers lifting selected tariffs
The same sources indicate that China also wants to remove tariffs on aircraft leasing. Chinese carriers do not own all of their aircraft and pay leasing fees to external companies to use them. Additional tariffs could strain their finances.
The agency notes that China is the largest producer of plastics in the world. Nevertheless, some local factories depend on ethane, which is mainly imported from the United States. The Chinese Ministry of Finance and the customs service have not commented on these reports. Bloomberg notes that the list of Chinese exceptions may not go beyond the discussion stage.
