China is extending the suspension of an increased tariff of 24 percent on US goods for one year, but maintaining a basic tariff of 10 percent. This was stated by the Chinese Ministry of Finance in a statement, according to the AFP news agency.
The statement states that the suspension follows "the consensus reached in the economic and trade consultations between China and the United States" and that the changes will take effect on November 10.
The Chinese Customs Commission also stated, according to the Reuters news agency, that China will eliminate some tariffs of up to 15 percent on US agricultural products, including soybeans, from November 10.
Last week, Chinese President Xi Jinping and US President Donald Trump met in South Korea. The two spoke positively about each other and the future relationship between the two countries both during and after the meeting. Trump added, according to Reuters, that he and Xi agreed on "almost everything".
After the meeting, Trump agreed to reduce tariffs on Chinese goods by 10 percent, so that from November 10 it will be 47 percent. That agreement was formalized on Tuesday, writes AFP.
The meeting between the two presidents was arranged after China imposed new restrictions on the export of rare earth elements. This then prompted Trump to threaten to impose a 100 percent tariff on top of the 57 percent already imposed on imports from China. At the meeting, Trump and Xi also agreed on an agreement on rare earth elements. It runs for one year and can be extended.
The trade war with China began in February, when Trump imposed a 10 percent tariff on Chinese goods and then an additional 10 percent. He justified this by saying that China had not stopped exporting the drug fentanyl to the United States.
The US tariff on Chinese goods was then raised further and at one point was as high as 145 percent. China's tariff on American goods was 125 percent.
China was not the only country affected by Trump's tariffs. Almost all parts of the world were subject to tariffs on exports to the United States.
This also applies to the EU, which negotiated an agreement in place this summer on a 15 percent tariff. Goods imported into the EU from the United States generally avoid tariffs.
/ritzau/
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