China to Cut Tariffs on Imported US cars

China is apparently opposed to the US in the trade dispute, US President Trump tweeted that Beijing wants to reduce tariffs on US import cars. This could also benefit German manufacturers.

According to US President Donald Trump, China is reducing import duties on US import cars. The Beijing government has pledged to “reduce and remove” the charges, which are currently at 40 percent, Trump said via the short message service Twitter.

How exactly reduction and reduction will take place, Trump did not explain. There has been no response from the US government and automakers so far. However, on Monday there will be a longer-term meeting between government representatives and car producers.

Should the Chinese government actually reduce tariffs significantly, not only American manufacturers should benefit from it, but also BMW, which produces SUVs of types X3-6 at its US plant in Spartanburg, US, and from there exported.

On Saturday, Trump and China’s President Xi Jinping had agreed to a 90-day hiatus in the trade dispute over a two-and-half-hour dinner on the sidelines of the G20 summit in Buenos Aires. Xi and he have an “incredible relationship” that will make progress in the trade dispute, Trump said at the table.

The US wants to waive during this time on tariff increases, China in return to buy more US products. In addition, negotiations should continue on issues such as the protection of intellectual property or technology transfer. According to the Chinese Foreign Ministry, the goal of the negotiations is to eliminate all special duties imposed.

For months, the two largest economies in the world have been engaged in a bitter dispute over bilateral trade relations. The US is facing a trade deficit with China and introduced special duties on Chinese goods worth $ 250 billion.

Beijing, on the other hand, is currently levying US $ 100 billion in import duties on US goods. Trump had threatened further duties worth 267 billion US dollars to increase the pressure. There was no question of that after the meeting in Buenos Aires.

The IMF expects world economic growth to plummet by 0.75 percentage point if all globally announced tariffs come into force, but reducing restrictions by 15 percent could boost growth by half a percentage point.

Supriya Bhor

Having Knack for precision, I take a meticulous approach to find informative pieces of news across industries such as technology, ICT, healthcare and F&B to name a few. Follow me to catch the latest trend.

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