China’s Ministry of Finance said that it will temporarily halt additional 25% tariffs on US cars and auto parts as of Jan 1. 2019, as the two countries embrace a trade war truce struck last month, Reuters reports.
The ministry added that it hopes that the tariff suspension, set to last three months, will help accelerate negotiations between Beijing and Washington.
The news was welcomed by US President Donald Trump, who claimed it as a victory for his “America First” policy towards China.
“China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended US Tariff Hikes,” Trump said on Twitter.
“US is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!”
In July China levied raised tariffs on US vehicles to 40%, shortly after cutting imports from all other countries to 15%. The latest suspension could be a useful boost to China’s domestic auto market, however, which is on track for its first annual decline in almost three decades.