China will reduce tariffs on imports of automobiles from the US for three months starting January 1, Beijing said on Friday, in the first major concession following a truce in the trade war with the US.
China has agreed to cut tariffs on imported American cars from 40 to 15 per cent, the ministry of finance said, “in order to implement the consensus” reached between president Xi Jinping and Donald Trump at the G20 summit in Argentina.
Beijing imposed a 40 per cent tariff on US car imports in July in response to Washington raising duties on a range of Chinese goods, while also lowering tariffs for auto imports from other countries from 25 per cent to 15 per cent.
Mr Trump claimed in a tweet following the G20 summit that Beijing had announced its intention to cut tarriffs, and the matter was discussed during a phone call between China’s top economic official Liu He and US Treasury secretary Steven Mnuchin this week, according to people with knowledge of the matter.
Analysts said the main beneficiaries of a reduction in tariffs would be German automakers that manufacture in the US, such Daimler and BMW whose exports to China consist mainly of sports utility vehicles.