China suspends tariff hikes on $126B of U.S. cars, auto parts

China to Suspend Tariff Hikes on U.S.-built Cars in 90 Day Truce in the Trade War

China is Negotiating With Trump From a Position Of Weakness and it’s Changing Beijing’s Approach

China is eager to conclude a major trade agreement with the United States to end the economic dispute between the world's two biggest economies and the deal could be reached in the near future, US President Donald Trump said, Trend reports citing Sputnik.

"This is a good signal that China and the U.S. are on track to solve the trade war", said Wang Cun, director of the China Automobile Dealers Association's import committee. "It could happen, and rather soon!" he tweeted.

Although the additional 25 percent in tariffs that had been placed on US -built cars and auto parts will be suspended, the original 15 percent tariff will remain in place.

"China just announced that their economy is growing much slower than anticipated because of our Trade War with them".

Earlier this year, China hiked its tariffs on USA autos and parts after the United States raised its tariffs on Chinese vehicles and parts to 27.5 percent.

Exports of USA -made passenger cars to China fell by $2.4 billion, or 30 percent, in the first nine months of 2018, according to CNN.

Earlier on December 14, China halted extra punitive duties that had been imposed this summer.

Those tariffs now fall from 40 per cent to 15pc - the same rate imposed on all foreign-made vehicles.

BMW and Daimler have been hardest hit by the additional levies, shipping large numbers of sport utility vehicles from plants in the USA to China. Navarro, an anti-China firebrand, last week warned that USA negotiators would hold "tough" with China, and said the key would be to "trust but verify".

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This tariff reduction will continue for three months, beginning on January 1.

But trade negotiators talked on the phone last week to discuss a timetable for talks.

China exported 53,300 vehicles to the USA market in 2017 and imported 280,208 US -built vehicles, according to data from the China Automotive Technology and Research Center (CATARC), a government-affiliated think-tank.

The arrest of Huawei's chief financial officer, Meng Wanzhou, in Vancouver on December 1 has angered China, raising concerns that her case could affect the trade negotiations.

China took more steps to defuse trade tensions with the United States, confirming it will remove the retaliatory duty on automobiles imported from America and preparing to restart purchases of American corn.

In Argentina, Trump and Xi agreed to a truce that delayed the planned January 1 US increase of tariffs on $200 billion worth of Chinese goods while they negotiate a trade deal.

In another signal that China may move to satisfy Mr Trump, the country's top legislature announced last Friday that it would hold a session from Dec 23 to Dec 29 to discuss legislation on foreign investment and draft revisions to the patent law.

Foreign carmakers have long pleaded for freer access to China's auto market while its own manufacturers are trying to expand overseas.

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