Published: Sat, December 15, 2018
Markets | By Otis Pena

China Suspends Additional Tariffs On US-Made Vehicles For 3 Months

China Suspends Additional Tariffs On US-Made Vehicles For 3 Months

His optimism followed China's decision earlier Friday to back off from extra punitive duties that had been imposed this summer on US-made cars and auto parts.

China has announced that it will be temporarily reducing tariffs on USA automobiles down to previous levels.

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. The automaker hit hardest by the Chinese tariff hike was Germany's BMW AG, which ships SUVs made in a SC factory to China.

"This is a good signal that China and the USA are on track to solve the trade war", said Wang Cun, director of the China Automobile Dealers Association's import committee.

Economists say 90 days probably is too little time to resolve conflicts that have bedeviled U.S.

Confusion and unease over what agreement the two sides reached in Argentina has roiled stock markets.

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.

Shortly after the Chinese announcement, Tesla Inc said it had cut prices on its Model S and Model X vehicles in China.

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Put simply, if people are posting a lot of pictures of Trump using the word "idiot", this will be reflected in the results. Pichai replied by saying Google's searches are based on multiple factors that determine the end result.

The arrest of Huawei's chief financial officer, Meng Wanzhou, in Vancouver on December 1 has also angered China, raising concerns that her case could affect the trade negotiations.

The Finance Ministry said the tariff suspension would apply to imports worth up to a total of $126 billion, but that would be almost 10 times the $13 billion of vehicles the United States exported to China past year.

"We applaud both governments for working together constructively to reduce trade barriers and open markets", Hinrichs said.

Exports of USA -made passenger cars to China fell by $2.4 billion, or 30 percent, in the first nine months of 2018, according to CNN.

For now, the National People's Congress Standing Committee has not provided details about the draft legislation.

Part of that could be because of slowing Chinese auto sales.

China's top officials on the Politburo said in a statement Thursday that major economic indicators will be kept within a reasonable range next year.

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