China Agrees to Reduce And Remove Tariffs on US Autos

President Trump announced In a late-night Twitter on Sunday that China had agreed to "reduce and remove" tariffs on U.S.-produced vehicles imported into the country, following a meeting with Chinese leader Xi Jinping during which the two powers agreed to a trade truce.
It was unclear what China had agreed to do, because the issue of auto industry had not appeared in the public disclosures from either the U.S. or Chinese governments issued after the two sides hammered out their temporary trade-war truce. 
The move, if realized, would bolster U.S. carmakers who were hit hard when China ramped up levies on U.S.-made cars in July as part of a broad package of retaliatory tariffs amid the sprawling trade war between Washington and Beijing.
Beijing raised tariffs on U.S. auto imports to 40 percent in July, forcing many carmakers to hike prices in a major hit to the roughly $10 billion worth of passenger vehicles the United States sent to China last year.

https://www.nytimes.com/2018/12/03/business/china-trump-cars-tariffs.html

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Well, this tweet doesn't mean anything until we have an official confirmation of this agreement from both sides. We actually still don't know anything about conditions of this agreement. I guess we could expect Chinese to reduce tariffs that are only in place as retaliation for tariffs imposed on them by the US if the US removes those tariffs. Without any time frame on when this tariffs reduction was going to happen or what the reduction of tariffs will even be, makes me a little bit skeptical. But I sure we'll hear very soon more about it. 

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If true, this would be a win for the US. Something that seemed like a bad idea a few months ago, now is starting to actually workout. China is starting to back down. 

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China already said that tariffs on US cars would be 15%if not the trade dispute, calling for a negotiated solution. According to Bloomberg, Chinese officials discussed the possibility of lowering tariffs on U.S. car imports before Xi met Trump in Argentina, but the magnitude and timing of such a reduction were unclear.  And they still are. 

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Perhaps it would be more informative to wait until the Chinese Commerce Ministry has its weekly news conference and see if Trump's tweet is confirmed. Anyway, China tariffs going away would be a perfect timing for Tesla. Next quarter this company is going to sell the first Model 3 units in China.

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20 hours ago, Adam Varga said:

Perhaps it would be more informative to wait until the Chinese Commerce Ministry has its weekly news conference and see if Trump's tweet is confirmed. Anyway, China tariffs going away would be a perfect timing for Tesla. Next quarter this company is going to sell the first Model 3 units in China.

or maybe the didn't  http://www.msn.com/en-us/news/politics/senior-aides-push-back-on-trumps-claim-that-china-agreed-to-cut-auto-tariffs/ar-BBQrFaM?ocid=ientp

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The only way Mr Trump would be a instant success is getting China to open the flood gates for Soy, ending the rotting stock piles and a renewed farm vote. He has already lost the Auto Industry. IMO.

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Much of the  trade imbalance  between the U.S. and China was born from Corporate America ,..IE; Walmart   and the transition to a service economy.  The imbalance has greatened to the point  of having a need  for the entire trade system with China to be overhauled. The Trump Administration does not have the economic philosophical acumen to rebalance ,because  the same type of   situation in our own country  just keeps getting worse.  Finance is 30% + of GDP and the only reason it shines is because of a gross negligence  by our Treasury and Federal Reserve  pertaining to money creation by private means. You cannot fix  or obtain a good trade relationship with anyone  until you first repair the abomination of a money system that is centered in the U.S. and Western Europe.  Our own credit oriented GDP  (growth) is not  a good partner with a true manufacturing  or a  productive society that has the means to negotiate a true long term trade deal with China . Trump , Mnuchin ,Ross  and Kudlow  have  zero  experience  and a one sided Corporate loyalty  that every country  on Earth can see  before negotiations begin.

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1 hour ago, Chuck Keehne Jr said:

The only way Mr Trump would be a instant success is getting China to open the flood gates for Soy, ending the rotting stock piles and a renewed farm vote. He has already lost the Auto Industry. IMO.

The farmers only have to wait another 90 days to see what happends

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It seems there is no confirmation from China on what has been agreed - but I do find it unlikely that they would drop the entire 40% tariff as Trump has prematurely gloated about.

Also, I cannot see the underpinning issue being resolved in 90 days - that of intellectual property rights being continually stolen.  Tump's got some hardliners on this project and I can't see them being happy for reduced tariffs and in return, them sweeping under the carpet the main gripe that kicked all this tariff-setting off.

Sorry, not the best grammar there!

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(edited)

1. ¿Can someone addicted to hacking/stealing, really stop doing such things (hacking/stealing)? 

2. ¿How can the world verify that China will stop stealing/hacking through HUAWEI, ZTE, LENOVO, and the many products it sells that are manufactured in China?

Edited by Specyoulator
wanted it to be more clear

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Anyways...let's suppose China says: OK guys, i'll stop stealing.

¿What do you think Trump will ask for as a prove that they are really serious about it?

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