China to cut tariffs in half on $75 billion of U.S. goods

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China announced Thursday it will cut tariffs on $75 billion of U.S. imports by half, starting next week.

In a statement, China’s Ministry of Finance said 10% tariffs on some U.S. goods would be cut to 5%, while other goods that have faced 5% levies will have those cut to 2.5%, starting at 1:01 p.m. Feb. 14, Beijing time.

The ministry said the move was made “In order to promote the healthy and stable development of Sino-U.S. economic and trade relations.”

While the statement did not mention the current coronavirus outbreak, on Saturday the ministry suspended tariffs against some U.S. imports that could be used to help treat victims of the epidemic.

In January, the U.S. and China signed a “phase one” trade deal, signalling a truce in a yearslong trade war. The deal cuts U.S. tariffs to 7.5% on about $120 billion in Chinese goods, but kept in place tariffs on about $360 billion of Chinese imports. President Donald Trump said those tariffs would stay in place until there’s a “phase two” trade deal.

U.S. stock futures gained after the announcement, with Dow Jones Industrial Average futures YM00, +0.64%  , S&P 500 futures ES00, +0.51%   and Nasdaq futures NQ00, +0.69%   all ticking up. Asian markets, which had been rising before the news, continued their gains, with indexes in Japan NIK, +2.82%   and Hong Kong HSI, +1.96%   up around 2%.