China suspends 24% tariff on US goods

China suspends 24% tariff on US goods and retains 10%

An official communiqué from the Chinese government confirms that starting from 5 November, the country will suspend for one year the additional 24% tariff on US goods introduced in April this year.
However, China is maintaining the 10% general rate on imports of US goods that it introduced earlier.

The Commission on Tariffs under the State Council of the People's Republic of China also announced that starting from 10 November, tariffs up to 15% on certain agricultural products from the United States will be cancelled.

Why the solution is partial and with limitations

While the move is attractive from a trade policy perspective, it does not mean a complete restoration of competitiveness for US soybeans: after the removal of tariffs on some agricultural products, Chinese importers still face a rate of around 13%, including the 3% basic tariff plus other charges.

Analysts point out that although the decision sends a signal of relief in relations between the two major economies, it does not guarantee a quick return of US exporters to the Chinese market. An economist at an international company said:

«We do not expect significant demand from China for US soybeans in the near future. Brazil is cheaper, and even non-Chinese buyers are choosing it.».

Significance and prospects

• The move indicates a temporary easing of trade tensions between the US and China following a meeting between the two leaders.

• However, the continued 10% rate and the partial retention of barriers mean that China continues to hold leverage in trade.

• U.S. exporters, particularly agricultural producers, may receive only limited relief in accessing the Chinese market in the short term.

• The partial lifting of tariffs may signal a gradual normalisation of trade, but it is not a guarantee of a return to previous volumes.