The President of USA announces Chinese rollback of auto tariffs
Published December 4, 2018
Earlier in the previous week, on Sunday, December 2nd President Donald Trump made an announcement stating that USA and China have reached an agreement wherein the Asian country will rollback its tariffs on American automobiles below 40 per cent.
In a Twitter post, the President of the United States of America said, “China has agreed upon terms and conditions to lessen and eliminate tariffs on cars importing into China from the U.S. The current tariff is 40%.”
President Trump made this announcement just a day after he sat down with Chinese President Xi Jinping for negotiation talks and dinner at the G20 Summit held in Buenos Aires, Argentina.
As per reported by Politico, China’s tariff’s on the U.S. imported automobiles were at 15 per cent from 25 per cent, earlier in the year, which then gradually raised to 40 per cent amid the escalating trade war with the U.S.
According to sources closely following the matter, both leaders reached a 90-day cease-fire agreement, during which Trump shall postpone the scheduled U.S. tariff increase.
Also simultaneously, the world’s two most-powerful economies shall also start negotiation regarding the administration’s allegations against China in which it accuses the Asian country of systematically stealing trade secrets and forces the U.S. to share sensitive technology as the price of admission to the vast Chinese market.
As part of the deal, China reached an agreement with the USA to buy something defined by the White House as a “not yet agreed upon, but very substantial” amount of U.S. products.
As per reports, this move will help in narrowing America’s gaping trade deficit with China.
However, as per reports, China has yet not published the timetable for lowering of tariffs below 40 per cent.
Categories: Automotive News