THE WHAT? The US and China have agreed to reduce tariffs on approximately US$30 billion worth of bilateral trade, with cosmetics among the US products included in China’s tariff-cut list.
THE DETAILS The agreement covers 77 categories of Chinese goods entering the US and 1,619 categories of US goods entering China. China’s Ministry of Commerce said approximately 90 percent of the products covered by the reciprocal arrangement would see tariffs reduced to most-favoured-nation rates, although specific tariff reductions have not yet been detailed. For the cosmetics industry, China’s list includes cosmetics imported from the US, while the US list includes certain brushes used for the application of cosmetics as well as electric shavers and hair-removal appliances imported from China.
THE WHY? The agreement could reduce import costs for beauty and personal care companies trading between the world’s two largest consumer markets, with cosmetics, beauty tools and personal care devices directly represented among the affected product categories.
Source: Bloomberg
