Beijing has agreed to bring down tariffs on cars imported from the US, as well as increase purchases of American agricultural goods, a move that could bring the two sides closer to agreeing a longer-lasting trade war cease fire.
Cars shipped into China from the US will be subject to 15% tariffs, down from the existing 40%, sources briefed on the matter told the Wall Street Journal. This rate would be in line with the duties faced by vehicles from all other countries, after China slashed auto tariffs in July.
Chinese Vice Premier Liu He confirmed the move after a call with US Treasury Secretary Steven Mnuchin and Trade Rep. Robert Lighthizer. No details were given, however, on the timing of the tariff cuts.
US President Donald Trump tweeted afterwards that “very productive conversations” were ongoing with China and followers should “watch for some important announcements!”
China’s Commerce Ministry, meanwhile, said that the conversation will help both sides “push forward with next steps in a timetable and road map” for coming negotiations.