China announced 79 US products are now eligible for exemption from retaliatory tariffs imposed during the countries’ trade war.
The exemptions, which take effect May 19 and expire May 18, 202, include rare earth metal ores, gold ores, silver ores, nickel, and aluminum alloy products and concentrates. Other items include radar equipment, disinfectant, semi-conductor parts, and a range of chemicals.
The countries’ two-year Phase I agreement will, compared to 2017, increase China’s purchases of US goods by $123bn in year-one, and by $177bn in year-two.
US has placed pressure on China to boost its imports, with President Trump even threatening to terminate the Phase I deal signed in January if China fails to meet its purchase commitments. According to data released by the Commerce Department last week, China’s purchases of U.S. goods and services through the first three months of the 2020 were below 2017 levels by more than $7bn.
In February, China stated it would grant exemptions for 696 US goods, including key agricultural products, such as pork and soybeans.
Since September 2019, China has issued four lists of US goods eligible for exemption from retaliatory tariffs.