China Schemes to Cut Imports' Tariff on July 1

China already has plans to reduce tariffs on imports of some consumer products from food and cosmetics beginning on July 1st, according to Bloomberg on Thursday. This will be applied more to product lines in comparison to previous cuts last year around 200 items.

The move is in line with the statement of China reading their pledges, including the United States. China would then take necessary measures to increase imports and support global brands who wanted to have a stronger presence in China, especially on the backcountry part.

Specifics on tariff cuts are not yet finalized and it is still subject to the approval of the State Council or the cabinet, as stated by Bloomberg.

Analysts think that the reduction of the tariff would not have a big impact on domestic consumption. While, looking from a bigger perspective, its effect on the economy is also limited and may be difficult to measure.

On the annual work report of Premier Li Keqiang of the State Council, China will have to expand imports and lesser import duties on automobiles, as well as, some goods that are used daily by consumers to support the expansion of the Asian country.

Tariffs on the majority of autos will be reduced to 15 percent from 25 percent, effective on July 1, according to Beijing earlier this week. Charges on auto parts would be lessened by 6 percent from estimated of 10 percent.

Meanwhile, retail sales slowed by 9.4 percent in the previous month, which is less than the forecast of 10.0 percent gain rate of 10.1 percent in March.

The planned tariff cuts will have an impact on medicine, health products, food, and cosmetics to name a few. At the same time, tariff reduction would also support the plan of boosting consumption within locally to further help advancement as the economy slows down.