China Decided to Cut Tariffs on US-Made Vehicles Temporarily


China confirmed that it is going to cut tariffs on all American-made vehicles as part of a temporary ceasefire agreement in the trade war between it and America.

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On Friday, December 14, China’s Ministry of Finance said that the temporary tariff reductions should take effect on January 1, 2019. China is going to slice the tariff from the current 40 percent to 15 percent that it currently charges for new vehicles imported from any other country. Just one year ago, China installed a 25-percent duty on any cars imported from the United States. China had initially agreed on the 15 percent tariff but ultimately boosted the tariff t 40 percent. Along with the new 15-percent duty for the US, it plans to halt the 5 percent tariff on a variety of auto parts.

Trump Administration

The Chinese president, Xi Jinping, and US president, Donald Trump, reached their truce during the global leaders’ summit in Argentina.

Trump’s administration hasn’t announced plans to reduce US import duties for the handful of vehicles built in China. However, the Chinese Ministry of Finance claimed in a recent statement that it hopes China and the United States can come to some agreement on trade policies quickly to stop the trade war and become amicable with each other.

Tesla and BMW spokespeople said on Monday that they plan to lower prices of their US-made vehicles, such as the Tesla Model X and the BMW X5. Ford has no current plans to lower prices but says it is encouraged by the announcement.

The ceasefire is set to last for 90 days, which is hopefully enough time for the United States and China to work out a long-term truce and agreement.

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China Decided to Cut Tariffs on US-Made Vehicles Temporarily

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