The US Senate announced that it has approved a joint resolution to terminate the national emergency declared by the president to impose global tariffs. Earlier this week, the Senate passed two resolutions aimed at removing tariffs imposed on Canada and Brazil.
These resolutions now need to be voted on in the House of Representatives. However, House Republicans have repeatedly blocked legislation to overturn the tariffs, making it difficult for these resolutions to pass in the House. Even if the House ultimately passes them, Congress still needs a two-thirds majority to override the president's veto.
The main consensus reached by the US and Chinese trade teams through consultations in Kuala Lumpur includes the following:
1. The US will remove the 10% so-called "fentanyl tariff" on Chinese goods (including goods from Hong Kong and Macau), and the 24% retaliatory tariff on Chinese goods (including goods from Hong Kong and Macau) will remain suspended for another year. China will adjust its countermeasures against the aforementioned US tariffs accordingly. Both sides agreed to extend some tariff exclusions.
2. The US will suspend its 50% penetration rule on export controls announced on September 29 for one year. China will suspend the export control measures announced on October 9 for one year and will study and refine specific plans.
3. The US will suspend its Section 301 investigations against China's maritime, logistics, and shipbuilding industries for one year. Following the US suspension, China will also suspend its countermeasures against the US for one year.
In addition, both sides reached consensus on issues such as fentanyl control cooperation, expanding agricultural trade, and handling individual cases involving relevant companies. Both sides further affirmed the results of the Madrid trade consultations, with the US making positive commitments in areas such as investment. China will work with the US to properly resolve issues related to TikTok.
