China to cut car tariffs in trade truce: US

Beijing, December 3

China will roll back tariffs on US-made cars, US President Donald Trump said, unveiling another potential breakthrough in a trade war truce that cheered stock markets.

Trump’s announcement came a day after he and Chinese President Xi Jinping agreed to suspend any new tariffs and give negotiators 90 days to strike a deal. The ceasefire follows months of tit-for-tat custom duties on hundreds of billions of dollars worth of goods that raised fears of an escalation harmful to the global economy. Both sides gained from hitting the pause button, with Trump securing a Chinese pledge to import more US goods and Xi staving off the further pressure that higher tariffs would place on his country’s slowing economy.

Trump said China agreed to “reduce and remove” tariffs of 40% on cars, though Beijing is yet to confirm. — AFP