US-China Business – level 3

12-02-2020 07:00

The Chinese Ministry of Finance said that China plans to cut tariffs on $75 billion worth of goods that the country imports from the US.

Tariffs on goods like pork and soybeans will be reduced from 10% to 5%, and tariffs on other goods such as car parts and crude oil will drop from 5% to 2.5%. These tariff cuts will take effect on February 14.

Last month, the US and China signed a trade deal which will help solve the trade war between the two countries. The US agreed to delay new tariffs on goods imported from China. In exchange, China promised to purchase about $200 billion worth of US goods.

The Ministry said that China wants to eliminate all tariff increases. However, the next steps depend on the development of the economic and trade situation between China and the US.

Difficult words: tariff (a tax on imported and exported goods), crude oil (a kind of a liquid also called fossil fuel that comes from animal and plant material), cut (a reduction).

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