China is reportedly considering cutting tariffs on U.S.-made cars.
Earlier this month, U.S. President Donald Trump tweeted that China is willing to ““reduce and remove” tariffs on U.S. cars, a claim that Chinese officials did not comment on at the time. And now, a Bloomberg report says that a proposal to lower Chinese tariffs to 15% (from 40%) on U.S.-made cars has been sent to China’s Cabinet for review, citing anonymous sources familiar with the matter.
In July, China hiked tariff rate on imported U.S.-made cars to 40% as a retaliatory move against U.S. tariffs on Chinese goods. Trade war between the two nations formed a prominent narrative for a large part of the year. But earlier this month, trade talk between Trump and China President Xi Jinping on the sidelines of a summit in Buenos Aires apparently spurred some hope of a truce with Trump indicating that China could lower tariffs on U.S. cars.
However, China’s decision on car tariffs is yet to be finalized. Also, last week's arrest of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou in connection with sanctions violations might have re-ignited concerns on U.S.-China tensions.