BEIJING: Chinainfo-icon will cut import tariffs on soybean and some other goods from Indiainfo-icon and four other Asian nations from July 1, China's Cabinet announced today, amidst a looming trade warinfo-icon with the USinfo-icon.

China will reduce tariffs on soybean imported from India, South Koreainfo-icon, Bangladeshinfo-icon, Laosinfo-icon, and Sri Lankainfo-icon from the current three per cent to zero, official mediainfo-icon quoted the decision by State Council, China's Cabinet.

Imported products such as chemicals, agricultural products, medical supplies, clothing, steel and aluminium products from these countries will also enjoy certain tariff reductions, the state-run China Daily website reported.

All imported products from the above five countries will adapt a tariff rate of the Second Amendment of The Asiainfo-icon-Pacific Trade Agreement, the State Council said.

The State Council's announcement came amidst tariff spat between worldinfo-icon's two largest economies, China and the US, following pressure by US President Donald Trumpinfo-icon to cut down USD 375 billion deficit in the bilateral trade.

The US is a major supplier of soybeans to China.

For its part, India has been pressuring China to open up more for Indian products, specially IT and Pharmaceutical, to reduce USD 51 billion in over USD 84 billion trade.

During the India-China strategic dialogue held here in April, Vice Chairman of NITI Aayog (National Institution for Transforming India) Rajiv Kumar had pitched for export of soybean and sugar to China from India.

After the Wuhan informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping, both the countries are holding talks to step up Indian exports of agricultural products like rice and sugar as well as pharmaceutical, specially the cancer curing drugs to China.