China to allow U.S. to apply for agriculture tariff waivers

China announced Tuesday that, starting March 2, it will allow importers to apply for tariff exemptions on 696 American goods, the third round of such exemptions China has offered in the wake of the Phase 1 trade deal that took effect on Feb. 14., Stella Qiu and Se Young Lee report for Reuters.

"U.S. goods eligible for tariff exemptions include key agricultural and energy products such as pork, beef, soybeans, liquefied natural gas and crude oil, which were subject to extra tariffs imposed during the escalation of the bilateral trade dispute," Qiu and Lee report. "Other products subject to exemption on additional tariffs imposed include denatured ethanol and wheat, corn and sorghum. Some medical devices and metals including copper ore and concentrates, copper scrap and aluminum scrap are also subject to exemption."

The announcement emphasized that exemptions will be granted based on market conditions and commercial considerations, Qiu and Lee report. Though Chinese President Xi Jinping assured President Trump during a recent call that China will meet its Phase 1 purchasing targets, the caveat allows China more latitude in what it buys from the U.S., especially since China has already purchased a large amount of soybeans from Brazil. The coronavirus epidemic may also make it difficult for China to meet its purchasing targets.