The Chinese project is to cut the rates of American cars imported even below the levels of pre-commercial disputes
China could surprise everyone. According to the latest information, in fact, China could reduce car import tariffs from the United States to less than it was before their trade dispute led to additional duties for billions of dollars of goods.
Making this future move seem to be the tweet of US President Donald Trump, one day after meeting his Chinese counterpart, Xi Jinping. In the tweet we read: China has agreed to reduce and remove tariffs on cars coming into China from the U.S.,” Trump wrote. “Currently the tariff is 40%.”
Rates could fall to less than 15 percent as early as the end of this year
The history of the controversy over American cars is symptomatic of the conflicts between the US and China. China, the world’s largest auto market, levied a 25 percent rate on American cars until July 1, when it cut the tariff to 15 percent. That lasted less than a week. On July 6, it added 25 percent to the new rate in response to a first wave of US tariff hikes on Chinese imports.
Trump had planned to increase the rate to 25 percent at the start of 2019. But after meeting Xi at the G20 summit in Buenos Aires, he agreed to postpone for 90 days so the countries could try to work out a deal
China imported USD51 billion worth of cars last year
An expert who spoke to Securities Daily has confirmed that competition in the Chinese auto industry is becoming increasingly fierce. Another determining factor is that Chinese cars are becoming increasingly efficient and competitive, making American cars unattractive.
China imported USD51 billion worth of cars last year, with just under a quarter coming from North America, according to the China Passenger Car Association. Car and light truck imports from the US totaled USD9.5 billion, or about 280,200 vehicles, 10 percent of the total number of units imported.
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