China suspends tariffs on US-made cars, corn and other goods

China has suspended additional tariffs on some US goods that were meant to be implemented on Dec. 15, the State Council’s customs tariff commission said on Sunday, after the world’s two largest economies agreed a “phase one” trade deal on Friday. The deal, rumors and leaks over which have gyrated world markets for months, reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods. China’s retaliatory tariffs were meant to target goods ranging from corn and wheat to US made vehicles and auto parts.

Other Chinese tariffs that had already been implemented on US goods would be left in place, the commission said in a statement issued on the websites of government departments including China’s finance ministry. “China hopes, on the basis of equality and mutual respect, to work with the United States, to properly resolve each other’s core concerns and promote the stable development of US-China economic and trade relations,” it added. Beijing has agreed to import at least $200 billion in additional US goods and services over the next two years on top of the amount it purchased in 2017, the top US trade negotiator said Friday. A statement issued by the United States Trade Representative also on Friday said the United States would leave in place 25% tariffs on $250 billion worth of Chinese goods.

The announcement comes two days after China and the United States agreed to a phase 1 trade deal after more than 18 months of escalating tensions. The two sides agreed to halt additional tariffs on almost $160 billion of Chinese consumer electronics and toys that were set to take effect December 15 and reduce economic penalties on goods that were imposed in September by half. They also unveiled new commitments by the Chinese to buy US farm goods and other products. But details of the agreement remain largely unknown, leaving some US-China watchers wondering what exactly is included in a first-round trade war pact among the world’s two largest economies. President Donald Trump was first to levy tariffs on China, accusing Beijing of unfair trade practices and theft of intellectual property. Beijing has accused Washington on economic bullying. The resulting tit-for-tat tariffs and other punitive actions have damaged China’s economy, threatened US farmers and economic growth, and caused swings in global markets. The two sides said they will continue immediate work on a more comprehensive phase 2 agreement.