China to pause 25 percent tariffs on U.S.-made cars

China to pause 25 percent tariffs on U.S.-made cars

China to pause 25 percent tariffs on U.S.-made cars

But the tangible move by China to suspend tariffs on cars and auto parts, as announced by Trump on Twitter shortly after the meeting, is a sign that trade negotiations remain on track. US Trade Representative Robert Lighthizer is leading talks to reach a deal on "structural changes" to China's economy by March 1. "It could happen, and rather soon!"

The Customs Tariff Commission of China's State Council said this week the government plans to remove an additional 25 percent tariff on imported cars from the United States for three months, starting January 1, the People's Daily and other state media reported Friday. They have just suspended US Tariff Hikes. After Mr Trump met President Xi Jinping in Buenos Aires on Dec 1, the United States agreed to put off raising the tariff rate on the US$200 billion of imports from 10 per cent to 25 per cent.

Shares of BMW and Daimler, which import thousands of SUVs into China from plants in the USA, reversed earlier losses in Frankfurt on Friday tied to a weak European auto sales report.

Tesla has cut the price of certain Model S cars in China by up to US$15,230 (105,000 yuan), while prices for some Model X vehicles have been reduced by up to US$9,430 (65,000 yuan), Reuters reports, quoting Tesla's Chinese website.

The ministry of finance, in a statement on its website, also said it hopes China and the U.S. can speed up negotiations to remove all additional tariffs on each other's goods.

"It is essential that governments work together to advance balanced and fair trade".

This tariff reduction will continue for three months, beginning on January 1.




China apparently retaliated by detaining two Canadians on suspicion of "harm to national security" - a phrase often used by Beijing when alleging espionage.

The tariff suspension and soybean purchase are early signs that the bitter trade war between China and the U.S. may be starting to thaw.

The Chinese government could also be easing tariffs in response to domestic concerns.

Wang said auto makers in China that imported cars from the United States had seen a 30 percent decline in volume in the first 10 months of 2018, but the tariff cut would bring imports back to previous levels.

BMW and Daimler have been hardest hit by the additional levies, shipping large numbers of sport utility vehicles from plants in the U.S. to China.

USA exports to China fell 25 per cent on-year in November as the higher tariffs on hundreds of American goods hurt demand. That would be almost 10 times the $13 billion worth of vehicles the United States exported to China past year.

Maintaining and resolving the trade truce could help stabilise sentiment in China, where confidence in the economy has been hurt by the trade frictions with key trade partner the US.

Recommended News

  • Liverpool title bid hit by Matip injury

    Liverpool title bid hit by Matip injury

    And Liverpool have now confirmed Matip, 27, will need surgery to fix the bone and will be out of action for several weeks. Matip was hurt in the closing stages of Tuesday's Champions League win over Napoli .
    Kentucky hemp farmers react to likelihood of new Farm Bill

    Kentucky hemp farmers react to likelihood of new Farm Bill

    Tim Walz , Minnesota's Democratic governor-elect and member of the House Agriculture Committee, did not vote, nor did U.S. Echoing Rounds, Johnson added, "Most importantly, I think it gives South Dakota producers the predictability they need".
    Elon Musk suggests Tesla's new chairwoman won't rein him in

    Elon Musk suggests Tesla's new chairwoman won't rein him in

    In an interview with the United States network CBS , Musk said: "I want to be clear". Musk spoke on CBS' show " 60 Minutes ", broadcast Sunday evening.
  • Dirk Nowitzki To Make Season Debut Against Suns

    Dirk Nowitzki To Make Season Debut Against Suns

    Nowitzki, who hasn't averaged 30 minutes per game since the 2015-16 campaign, stressed that he won't be playing that much anymore. Along with the 2007 MVP Award, Nowitzki's greatest accomplishment is easily the 2011 NBA Playoffs.
    Sondra Locke, Oscar-nominated actress, dies at 74

    Sondra Locke, Oscar-nominated actress, dies at 74

    Locke's death was promptly reported to authorities, but was not publicized until a RadarOnline story Thursday. The film ultimately earned Locke an Academy Award nomination, as well as a pair of Golden Globe nominations.
    14m May wins no confidence vote

    14m May wins no confidence vote

    The vote of confidence was held only about 24 hours after it was announced-not much time for opponents to organize. If given a dose of truth serum, most Labour MPs would say they would scrap any talk of Brexit altogether.
  • Tourism rocket ship reaches space on test flight

    Tourism rocket ship reaches space on test flight

    The craft, known as the VSS Unity , took off attached to an airplane, then fired its rocket motors to reach new heights. Virgin Galactic considers 50 miles (80 kilometers) the boundary of space because that is the distance used by the U.S.
    OnePlus 6T sales grow 249 percent compared to the OnePlus 6

    OnePlus 6T sales grow 249 percent compared to the OnePlus 6

    The company today unveiled its new McLaren edition OnePlus 6T at an event at the McLaren Technology Centre in Woking, England. OnePlus 6T McLaren edition is the latest special edition model of a OnePlus flagship, that has already been launched globally.
    Trump considering 4 to be next chief of staff

    Trump considering 4 to be next chief of staff

    After reports Friday morning that he was about to be replaced, he wasn't seen at the White House until a dinner that night. Trade Representative Robert Lighthizer, a potential contender, said he was "entirely focused" on his current position.
  • Heated Oval Office exchange sees Trump told off by top Democrat

    Heated Oval Office exchange sees Trump told off by top Democrat

    The president reiterated he is willing to let government funding run out if he does not get adequate money for the border wall. President Donald Trump: "People are pouring into our country, including terrorists".
    Sundar Pichai tells Congress Chinese search engine isn't coming soon

    Sundar Pichai tells Congress Chinese search engine isn't coming soon

    Republican congresswoman Zoe Lofgren asked why pictures of the United States president came up when that specific term was searched.
    Manchester City will not be banned from European competition

    Manchester City will not be banned from European competition

    City claimed what Guardiola felt was a psychologically important victory at Chelsea early in last season's title-winning campaign. However, after speaking to City chairman and their chief executive, Guardiola does not think the club have anything to fear.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.