China will reduce import tariffs on textiles to 8.4% from 11.5% previously, in a move aimed at easing cost pressure on consumers and companies as the trade war with the US intensifies.
The decision was announced at a State Council meeting yesterday (26 September) as part of an import reduction programme that will see tariffs cut on 1,585 taxable items starting 1 November.
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China already cut a number of tariffs earlier this year, which amounted to an estimated total saving of around CNY60bn (US$8.7bn), according to the State Government’s website.
Yesterday’s move will put the country’s overall tariff rate at 7.5%, down from 9.8% in 2017.
China is currently engaged in a trade war with the US, which most recently approved a 10% tariff on an additional US$200bn worth of goods from China, in a move the US fashion industry says will considerably disrupt the sector’s supply chain. On 1 January 2019, the tariffs will rise to 25%.
China responded by imposing 5-10% tariffs on $60bn of US goods.
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By GlobalData
