China will lower import tariffs on 1585 goods including machinery, paper, textiles and construction materials from November 1, to reduce the costs for customers and companies even as its trade war with the US deepens. The combination of these and other tariff cuts this year will lower the tax burden on consumers and companies by about 60 billion Yuan (USD 8.7 billion). The government has yet to detail how the general tariff cut will apply to US goods affected by retaliatory tariffs in the trade war.
The average import tax for some machinery will be reduced to 8.8 % from 12.2 %, for textiles and construction materials to 8.4 % from 11.5 %, and for paper and some other products to 5.4 % from 6.6 %, the radio station reported. This will lower the average most-favoured nation tariff rate to 7.5 % from 9.8 %. China still has a higher average tariff rate than many developed economies. The US’ average applied MFN rate was 3.4 % in 2017.