On Sunday it was announced that China reduces their tariffs on various products, including textiles and steel.
The tariff rate on steel fell from 11.5 percent to 8.4 percent. This goes into effect on November 1, according to Reuters. “Reducing tariffs is conducive to promoting the balanced development of foreign trade and promoting a higher level of opening up to the outside world,” China’ finance ministry said.
It was also announced that the tariffs on wood ,paper, gemstones and minerals dropped to 5.4 percent from 6.6 percent. The average tariffs across 1,500 products came down to 7.8 percent from 10.5 percent.
Trump has put increasingly aggressive tariffs against Chinese goods. Just six days before China reduced their tariffs, Trump put a 10 percent tariff on $200 billion of Chinese goods. In August he did something similar with $50 billion of goods.
Per Washington Examiner:
Trump argues that the U.S. has too great of a trade imbalance with China and other countries, and that unfair policies have hurt the U.S. economy. Critics say American consumers will end up paying more when the cost of tariffs is passed on to them.
It’s not the first time China has reduced trade barriers amid Trump’s criticism. In July, China lowered tariffs on consumer goods including clothing and home appliances.
The latest Chinese government announcement comes as U.S. trade negotiators face a midnight deadline for an agreement with Canada to replace the North American Free Trade Agreement. The U.S. and Mexico announced a deal on principles for a new pact in August, starting a one-month clock before the text is due to Congress.
Another issue where the left is up in arms, but it’s clearly working. The trade deals with China are getting more and more fair by the day. Back in March Trump began his campaign to reform U.S. trade deals. He put a 25 percent tariff on steel and 10 percent on aluminum. Mexico, Canada and European Union are exempt from the tariff.