Amid Growing Tensions... China Temporarily Exempts Retaliatory Tariffs on 79 US Products

One-Year Temporary Exemption

[Asia Economy Reporter Cha Min-young] Amid escalating tensions between the U.S. and China over the COVID-19 pandemic and the implementation of the Phase One trade agreement, the Chinese government has decided to temporarily exclude certain U.S.-made products from retaliatory tariffs imposed on the United States.

According to the Chinese Ministry of Finance website, the State Council Tariff Commission announced on the 12th (local time) an additional list of tariff exemptions, including rare earth ores, gold and silver ores, aviation radar, and medical disinfectants. The exemption period will last for one year, from the 19th of this month until May 18th of next year.

China has exempted tariffs on some items several times after announcing additional tariffs on the U.S. during the height of the U.S.-China trade war. In February, tariff exemptions were also applied to 696 U.S. products, including key items such as soybeans and pork.

This latest measure comes amid heightened tensions between the U.S. and China due to the COVID-19 pandemic. The Phase One trade agreement between the U.S. and China, signed in January, has not been properly implemented since the outbreak of COVID-19. The U.S. dissatisfaction also stems from China's perceived lack of responsible behavior regarding the pandemic.

The U.S. has repeatedly urged China to promptly fulfill its promise to increase purchases of American goods, a core part of the Phase One trade agreement. On the 3rd, U.S. President Donald Trump warned during a Fox News town hall meeting, "If they do not buy, we will terminate the (Phase One trade) agreement."

Meanwhile, China has suggested that the U.S. attacks over the origin of COVID-19 are calculated moves to gain leverage in the second phase of trade negotiations.

China's state-run Global Times reported that some advisors are urging the Chinese government to invalidate the existing agreement and pursue renegotiations favorable to China.

This content was produced with the assistance of AI translation services.