China extends suspension of 24pct tariff on US goods for two months

Beijing announced on Monday that China has extended the suspension of its 24 percent additional tariff on US imports and special port fees for US-linked vessels for a further two months. The 24 percent tariff, which was set to expire on January 1, will remain suspended until January 10, 2027, according to the state council. However, a 10 percent tariff will continue to be levied.

The suspension of port fees on US-linked ships will also be extended until the same date. China's transport ministry also stated that the probe into shipping and shipbuilding supply chain security will continue to be suspended.

Following their meeting at the Washington summit in September, both countries agreed to a US$60 billion package of reciprocal tariff cuts, which includes around US$17 billion worth of US farm goods that China imported in 2024. However, the plan has not yet been finalized. China's decision to extend the tariff suspensions is part of its efforts to implement the outcomes and consensus reached at the summit.

The country's tariffs panel noted that the US side has repeatedly stated its intention to use Section 301 tariffs to replace tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which have been deemed invalid by judicial rulings. China will closely monitor the US side's subsequent measures and may adjust its tariff countermeasures accordingly.

The continued suspension of some additional tariffs on US goods is intended to maintain a stable and predictable policy environment for bilateral relations and promote the development of China-US economic and trade ties.