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China suspended punitive tariffs on more US goods, including aviation radar equipment, on Tuesday amid pressure from President Donald Trump to buy more imports as part of a truce in his trade war.
The Finance Ministry said that rate increases on 79 types of goods, including radar sets, disinfectants and rare earth minerals, would be suspended for one year starting May 19.
Washington agreed in January to cancel additional tariff hikes, and Beijing promised to buy more US agricultural exports. US officials said China agreed to address complaints about its technology policies.
On May 3, Trump threatened to terminate the deal if China does not buy more American products.
Trump previously said that Beijing agreed to buy $ 200 billion in US agricultural products and other exports. China has resumed purchases of US soybeans, but has not yet confirmed the size of its commitment.
Trump’s threat rekindled fears in the financial markets of more conflicts between the United States and China and the possible disruption of world trade at a time when economies are reeling from the impact of the coronavirus pandemic.
The two sides have raised tariffs on tens of billions of dollars of each other’s imports in a dispute over China’s technological ambitions and trade surplus.
The downturn in economic activity due to the virus has prompted suggestions that China may be unable to make commitments to boost imports.
Last week, US and Chinese trade negotiators promised to create “favorable conditions” to carry out the truce, the Chinese government announced. The two sides did not provide a timetable for further talks.
Tuesday’s announcement was the third Chinese tariff cut since the January deal.
Beijing announced on February 6 that it would reduce tariffs on $ 75 billion of American goods. He then reduced the penalties to a list of products that included medical and industrial machinery.
