BEIJING: China to cut auto tariffs on July 1, China announced today that it would cut tariffs on auto imports from July 1, the latest sign of a thaw in trade frictions with the United States.
Beijing has announced a flurry of trade liberalisations and reforms since coming under fire from the Trump administration and some European politicians for its protectionist policies.
The planned reduction in import duties from 25 percent to 15 percent is a boon for international automakers but may fall short of fulfilling US President Donald Trump’s expectations that Beijing match US tariffs of 2.5 percent.
Demands reportedly put to China by the United States at the start of trade talks called on it to lower all tariffs to at least match those of the US. Trump has been following the issue closely and on Monday tweeted, “On China,
Barriers and Tariffs to come down for first time.” The announcement in Beijing came days after Vice Premier Liu He and US Treasury Secretary Steve Mnuchin led negotiations in Washington which ended with an agreement to pull back from the brink of a trade war.
The two sides agreed to refrain from imposing tariffs threatened on billions of dollars’ worth of goods that would have dented US-China trade.
But the Trump administration has been split on the issue, with some members of the negotiating team saying the tariffs could still be imposed.
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