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China made Wednesday an important step back in its trade war with the United States, announcing that it would reduce tariffs on many non-US products.
The cuts, likely intended to protect Chinese consumers against escalating conflict with the Trump administration, will come into effect on November 1.
The products impacted by the cuts will include electrical equipment, machinery and textiles, said the Chinese government.
Tariff cuts are expected to save Chinese consumers and businesses about 60 billion yuan ($ 8.7 billion), according to Reuters, which quotes Chinese public radio.
As a result of the cuts, China's overall tariff level will be reduced from 9.8 percent last year to 7.5 percent by the end of 2018, according to Reuters.
In addition to protecting Chinese consumers, this measure should also encourage citizens not to buy American products. By reducing tariffs on non-US products while increasing them for US imports, China is effectively removing its consumers from these products, which could harm the United States.
Earlier this year, the Chinese government lowered import tariffs by 25 percent to 15 percent, but only a few weeks later increased tariffs on US auto imports to 40 percent. This initiative has boosted Japanese and European auto imports.
The announcement came just a week after the Trump administration imposed a $ 200 billion tariff on Chinese imports, before Beijing responded with a US $ 60 billion strike on the United States. Both sides said they were willing to impose new tariffs, with President Donald Trump frequently indicating that he was willing to tax all of the $ 505 billion worth of Chinese goods destined for the United States.
As tariffs have increased, communications between the two parties has been increasingly tense in recent weeks. China has canceled planned talks between mid-level officials over the weekend, and re-engagement looks unlikely at least after the November US elections.
