China Eases US Tariffs, Scraps Farm Levies As Trump Cuts Fentanyl Duties In Fresh Trade Truce

China has rolled back 24% additional tariffs on U.S. goods for a year, but the 10% levies introduced in response to President Donald Trump‘s ‘Liberation Day‘ duties will remain in effect, the country’s cabinet confirmed on Wednesday.

Meanwhile, Trump signed the executive order on Tuesday to formally cut a fentanyl-related tariff on imports from China to 10% from 20%, delivering on a key element of the trade deal struck with Chinese President Xi Jinping.

Farm Products Tariffs Scrapped

The State Council's tariff commission also announced that it will remove tariffs of up to 15% on select U.S. agricultural products starting Nov. 10. This refers to its March announcement, where China outlined plans to levy an extra 15% tariff on U.S. imports of chicken, wheat, corn, and cotton.

Meanwhile, items such as sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products were slated to face an additional 10% tariff.

“The continued suspension of certain bilateral tariffs between China and the United States is conducive to promoting the healthy, stable, and sustainable development of China-US economic and trade relations,” wrote China’s Ministry of Finance.

Changes in tariffs follow months of spiraling announcements and export curbs between the world's two largest economies.

Price Action

Over the past six months, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, climbed 19.83% and 27.44%, respectively, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.