China to cut tariffs on some goods imported from the US by half from Feb 14 - Reuters

Dhwani Mehta FXStreet

Reuters reports key headlines on the US-China trade war, citing that China is said to cut tariffs on some goods imported from the US by half.

Further Points:

Tariff reductions on some goods from the US to take effect as of 1301 hours on Feb 14.

Tariffs on some US goods to be cut to 5% from 10% previously, some US goods to see tariffs reduced to 2.5% from 5% previously.

Hopes to work with the US towards eliminating all tariff increases.

China hopes it and the US can abide by the agreed trade deal and implement it well.

Hopes it and the US can work to boost market confidence, push bilateral trade development and world economic growth.

Market Implications:

The risk sentiment is experiencing a fresh boost on the trade-positive headlines, as the USD/JPY pair nears the 110 handle while the Aussie prints fresh daily tops near 0.6765.

The S&P 500 futures extend gains by 0.40% while Treasury yields rally nearly 1%. The Asian equity market tracks the positive close on Wall Street overnight and rises over 2% amid easing concerns over the China coronavirus fears.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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