As Trump Raises Tariffs, China Reduces Taxes on Imports

China's Ministry of Finance cuts tariffs on nearly 1,600 products as of November 1, opening up its economy and increasing spending while easing trade tensions with the United States .

China will reduce tariffs on textiles and metals, including iron and steel products, from 11.5% to 8.4% and tariffs on wood and paper products, minerals and gemstones 6.6% to 5.4%. Prices on machinery and electrical equipment will also be lowered.

According to the ministry, average tariffs on nearly 1,600 products, or about 19 percent of all taxable products, will be reduced from 10.5 percent to 7.8 percent, lowering China's overall tariff level. from 9.8% in 2017 to 7.5% in 2018 reported.

"The tariff reduction is conducive to promoting the balanced development of foreign trade and promoting a higher level of openness to the outside world," said the Ministry of Finance.

While China has threatened to retaliate on US products, its finance ministry has also cut tariffs twice this year. As of May, China has made the majority of imported medicines duty-free. And in July, China reduced import duties on a range of consumer goods, including cars, clothing, cosmetics, home appliances and fitness products.

A new JPMorgan study assumes the United States will levy tariffs of 25 percent on Chinese imports next year and "full tariffs could trigger the first declines in Trump-era profits."