China announced on Wednesday that it will extend for one year the suspension of additional tariffs on US goods, reaffirming commitments made during last week’s meeting between Presidents Xi Jinping and Donald Trump in South Korea.
According to a statement from China’s Ministry of Finance, citing the State Council, the country will continue suspending the 24% tariff on U.S. imports while maintaining an existing 10% rate. The renewed suspension takes effect November 10.
The United States confirmed it will reciprocate by cutting additional tariffs on Chinese products from 20% to 10%, also starting November 10.
Trade relations between the world’s two largest economies have been strained this year following rounds of escalating tariffs that once reached triple digits. Recent negotiations, however, have shown signs of easing tensions.
Beijing also announced it would roll back the extra tariffs imposed in March on a range of US agricultural exports including chicken, wheat, corn, cotton, soybeans, pork, and dairy returning those rates to 10%.
The tariffs were originally introduced in response to Washington’s criticism of China’s fentanyl controls. The adjustment is expected to offer relief to American farmers, a crucial political constituency for Trump.
In a further concession, China said it will suspend for one year export restrictions on rare earth technology, a strategic sector critical to defense, automotive, and electronics manufacturing.
In return, the US will pause for the same period its “Entity List” restrictions on selected Chinese companies and suspend measures targeting China’s shipbuilding industry.
Both governments pledged to refrain from additional countermeasures during the one-year period as part of broader efforts to stabilize bilateral trade relations.