In a bid to resolve the current trade war between China and the U.S., the Chinese have agreed to temporarily suspend a 25 per cent tariff on U.S.-made vehicles and auto parts, effective January 1, 2019.
The tariff, introduced in July, was a countermeasure for a 25 per cent tariff the United States placed on Chinese vehicles and parts.
U.S. President Donald Trump welcomed the news while a representative for Chinese car makers said the tariff cut indicates both countries “are on track to solve the trade war”.
This is the second trade concession made recently by China to appease the U.S.. The first was an agreement to buy more U.S. soybeans, announced after the leaders of both countries met in Argentina on December 1.
Significant tariffs, applied by both countries, remain.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.