In the wake of the Phase One trade deal signed on January 15, 2020, China has decided it will reduce tariffs on $75 billion of U.S. goods. China’s ministry of economy published an announcement on February 5, 2020 outlining that it will reduce tariffs on some U.S. goods to 5% from 10%, while other products will see a drop to 2.5% from 5%. The tariff cut will take place starting on February 14, the same day the U.S. has announced it will lower tariffs on List 4A tariffs to 7.5% from 15%.

China had previously enacted the retaliatory tariffs early last September in response to President Trump’s decision to impose $100 billion of imports for the List 4A tariffs. As a component of the Phase One trade deal, Beijing has promised to increase purchases of U.S. goods by $200 billion over the next two years compared to 2017 levels. It is expected that lower tariffs will assist China to reach these aggressive purchasing targets.