China announced on Thursday 6th February 2020 that it will halve tariffs on hundreds of U.S. products.
China is reported to have said that tariff reductions for the relevant goods will take effect from the 14th February 2020. They were initially announced on the 1st September.
Global markets climb
Global markets, already in a buoyant mood, reacted very favourably to the news. U.S. markets, already on steroids since Monday, climbed even higher overnight. Dow futures touched 29525.
Will U.S. cut tariffs too?
China may expect the tariff reduction to be reciprocated early by the U.S. as a goodwill gesture to further assist China in the battle against the coronavirus outbreak.
Treasury Secretary Steven Mnuchin in an interview said that the tariff cuts by China were expected and are part of the Phase One trade deal.
Mnuchin also indicated that the coronavirus is not expected to derail China’s trade deal commitments.