Beirut: China announced that the United States has agreed to cap the replacement tariffs on Chinese goods at a maximum of 20% during recent bilateral trade discussions. This announcement comes amidst ongoing trade tensions between the two economic giants.

According to Anadolu Agency, the Chinese Commerce Ministry disclosed that the current US replacement tariff on Chinese products is set at 12.5%. This rate was established after the US concluded its Section 301 investigation, which addressed imports allegedly tied to forced labor. On July 23, the Office of the US Trade Representative declared additional tariffs on imports from 60 economies, including the 12.5% tariff on goods from China.

Beijing has strongly criticized the US decision, labeling the investigation and subsequent tariffs as unilateral and protectionist measures. The Chinese Commerce Ministry stated that the US has reiterated its intention to replace existing duties, previously imposed under the International Emergency Economic Powers Act (IEEPA) and a Section 122 import surcharge, with Section 301 tariffs after the previous measures were deemed invalid.

The Chinese ministry emphasized that during economic and trade consultations, the US explicitly committed to ensuring that the additional tariffs on Chinese goods would not exceed the 20% threshold. Furthermore, China noted that its own countermeasures concerning the initial round of US tariffs related to fentanyl and reciprocal tariffs are still in effect.

The ministry also expressed its intention to monitor future US actions closely and indicated that it reserves the right to respond as necessary. Beijing called on Washington to eliminate unilateral tariffs and continue negotiations founded on mutual respect, equality, and mutual benefit.

This public disclosure by China regarding the tariff ceiling reportedly agreed upon during trade negotiations highlights the ongoing complexities in the China-US trade relationship, although the US has not independently confirmed the 20% limit.