Tesla Cuts Prices In China As Beijing Suspends New US Car Tariffs

China is Negotiating With Trump From a Position Of Weakness and it’s Changing Beijing’s Approach

China is Negotiating With Trump From a Position Of Weakness and it’s Changing Beijing’s Approach

In fact, Beijing on Friday announced that starting January 1 it would suspend the additional punitive tariffs on USA autos imposed in retaliation for Trump's tariffs on China, cutting them to 15 per cent from 40 per cent. The ceasefire began after Trump met with Chinese leader Xi Jinping in Buenos Aires on December 1 and agreed to hold off on further tariffs or retaliation at least until March 1.

China will now suspend 25 percent tariffs on 144 USA vehicle and auto part items, and 5 percent tariffs on 67 auto items between January 1 and March 31, the finance ministry said.

Beijing raised tariffs on American-made cars and auto parts this summer by 25 per cent in retaliation for U.S. tariffs on $50 billion of Chinese goods.

China is the world's biggest auto market but most US -branded vehicles sold here are manufactured in Chinese factories.

But negotiations continue on a trade pact that addresses Mr. Trump's demands that China end abuses such as theft of intellectual property and forced transfer of technology form America companies doing business in China.

Yet China's tariffs have hurt exports from U.S. auto plants. According to the Trump Administration Official, US did neither receive any documentation, nor timing details regarding the tariff reduction, however, the tariff cut has been ascertained from multiple sources. "They have just suspended U.S. Tariff Hikes", Trump said in a tweet.

More news: Bay Area schools, businesses receive threats as part of apparent nationwide scare
More news: Marshall responds to Farm Bill passing
More news: India claims a dramatic win over Australia in the first cricket test

In July, China hiked its tariffs on USA autos and parts after the United States raised its tariffs on Chinese vehicles and parts to 27.5 percent. The second tariff was due to rise January 1 until Trump agreed to the postponement. Since then, the two countries have exchanged several rounds of trade tariffs.

Beijing officials expressed confidence China could withstand USA pressure but the fight battered consumer confidence and threatened export industries that support millions of jobs.

China's economy has been slowing and the trade war hasn't helped.

German automaker BMW said it welcomes the temporary reduction of tariffs on vehicles imported to China from the United States, adding it is in talks with partners in China on how to respond.

Two Canadians were detained in China on Monday in what many experts say was retaliation for Canada's arrest of Meng.

Earlier this month, Trump, while talking about the US-China trade truce, had stated that either Washington will have a real deal with Beijing or no deal at all. But, if China and the USA fail to reach a deal at the end of 90 day truce, the threatened tariffs will be implemented once again.

Recommended News

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.