China Suspends Retaliatory Tariffs on US and Extends 24% Tariff Deferral... Begins 'Tariff Truce'

China: "Implementing the Constructive Agreements Reached in China-US Negotiations"

The Chinese government has decided to suspend retaliatory tariffs imposed in response to the United States' "fentanyl tariffs" and to extend the suspension of the additional 24% tariffs on U.S. goods for one year, in accordance with the recent agreement reached at the U.S.-China summit.

On November 5, the Tariff Policy Commission of the State Council of China announced that it would halt the imposition of an additional 15% tariff on U.S. chicken, wheat, corn, and cotton, as well as the 10% additional tariffs on sorghum, soybeans, pork, beef, and seafood, starting from 1:01 p.m. on November 10.

Donald Trump, President of the United States (left), and Xi Jinping, President of China. Photo by Yonhap News Agency

Previously, in March, the Donald Trump administration imposed the so-called "fentanyl tariffs" at a 20% rate on China, citing China's lack of cooperation in cracking down on fentanyl. In response, China implemented these retaliatory tariffs.

The Tariff Policy Commission stated, "This measure is intended to implement the substantial agreement reached in the China-U.S. economic and trade negotiations," adding, "The suspension of certain additional bilateral tariffs by both China and the U.S. will promote the healthy, stable, and sustainable development of China-U.S. economic and trade relations, benefit the people of both countries, and contribute to global prosperity."

Additionally, China has decided to further extend the suspension of the 24% additional tariff rate on U.S. goods, which had already been deferred, for another year starting November 10.

Since the beginning of this year, the U.S. and China have engaged in a trade war, exchanging high tariffs and export control measures. However, at the end of last month, during the summit held in Busan, both sides agreed to refrain from further escalation. After receiving a pledge of cooperation from China at the summit, President Trump decided to reduce the fentanyl tariff to 10%. On November 4 (local time), the White House announced an executive order to lower this tariff by 10 percentage points starting November 10.