There are finally signs of concrete moves from Beijing to back up claims from the Trump administration that China has agreed to lower tariffs on cars made in the US.
President Donald Trump first tweeted that China was prepared to make the move the day after his dinner with his Chinese counterpart, Xi Jinping.
China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) December 3, 2018
On Tuesday, The Wall Street Journal reported that Chinese Vice-Premier Liu He told US Treasury Secretary Steven Mnuchin in a phone call that China would reduce current tariffs of 40% to 15%, citing people familiar with the matter.
Shares of automakers including Daimler, Ford and Tesla rallied on the headline.
The move would not represent a new concession. The 40% rate is a retaliatory measure in response to US tariffs on Chinese-made goods.
Cutting the auto tariffs to 15% would reinstitute a move that China had made back in August, when Beijing cut duties on imported cars from 25% to 15%. At the time, the decision was seen as an indirect response to trade pressures from the Trump administration.
Brian Park
Are you saying that these people are dumb from buying such products repeatedly year after year for decades? It looks like that you are the dumb jackass here
Brian Park
Are you saying that these people are dumb from buying such products repeatedly year after year for decades? It looks like that you are the dumb jackass here
Reduction of tariffs on American cars will not help exports of cars to China. While China reduces tariffs from 40% to 15, the steel used by American car manufacturers has increased by 25% and the US dollar has appreciated by 10%. This means that American cars will cost around 30 to 35% more than what they cost six months ago. And the tariff is reduced by 25%. Where is the advantage for the American cars. On top of that, American cars must compete with German, Japanese, Korean and Chinese cars, all made in China.
Reduction of tariffs on American cars will not help exports of cars to China. While China reduces tariffs from 40% to 15, the steel used by American car manufacturers has increased by 25% and the US dollar has appreciated by 10%. This means that American cars will cost around 30 to 35% more than what they cost six months ago. And the tariff is reduced by 25%. Where is the advantage for the American cars. On top of that, American cars must compete with German, Japanese, Korean and Chinese cars, all made in China.
The boycott of American and Canadian products is underway and ewsuxtion in tariffs will do little good!
The boycott of American and Canadian products is underway and ewsuxtion in tariffs will do little good!