Trump, fresh from agreeing to a 90-day cease-fire in his trade war with China at the meeting of the G20, said on Twitter that “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.” The move, if realized, would bolster U.S. car manufacturers who were hit hard when China ramped up levies on U.S.-made cars in July as part of a broad package of retaliatory tariffs amid a sprawling trade war between Washington and Beijing.
CHINA HAD RAISED TARIFFS TO 40 PERCENT
China, the world’s largest auto market, raised tariffs on US auto imports to 40 percent in July, forcing many carmakers to hike prices in a major hit to the roughly $10 billion worth of passenger vehicles the United States sent to China last year.
That put US-made car brands like Tesla and Ford Motor Co’s (F.N) Lincoln at a major disadvantage, soon after China slashed auto import tariffs broadly to 15 percent for most vehicles.
Trump’s tweet did not give any further detail about the tariff cuts, such as when the deal had been reached or a new level for the Chinese levies.