Trump’s has secured a 90 day cease-fire with China which allows negotiators 90 days to bring about “structural changes” to China’s policies on intellectual property protection, technology transfers, services and agriculture, cyber theft, non-tariff barriers and cyber intrusions.
U.S. President Donald Trump has stated, China had agreed to “reduce and remove” tariffs on U.S. cars below the current 40% import duty that it levies on U.S.-made vehicles.
The development comes in the wake of Trump meeting Chinese President Xi Jinping in which they agreed to a 90-day cease-fire.
On Sunday, Trump Twitted, “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.”
Incidentally, Trump’s tweet did not specify a new level for the Chinese tariffs.
Neither, the White House nor the U.S. Trade Representative’s (USTR) office immediately responded to a request for comment.
On Saturday, following a 2-1/2 hour dinner meeting with Xi in Buenos Aires, Trump has agreed to postpone an increase in the tariff rate on $200 billion worth of Chinese imports to 25% from 10% scheduled for January 1, 2019. On its part, China agreed to resume purchases of select U.S. farm and energy commodities.
Both sides have agreed to negotiate over the next 90 over “structural changes” to China’s policies on intellectual property protection, technology transfers, services and agriculture, cyber theft, non-tariff barriers and cyber intrusions.
According to two sources briefed on the matter, big U.S. automakers are unaware of the lower tariffs on exports to China. The automakers are scheduled to meet with USTR today.
Lower auto tariffs would be a boost to automakers who are exporting vehicles to China, including Tesla, Ford Motor Co and BMW.