It is a good sign to see the US President Donald Trump tweeted that China agreed to reduce and remove 40% tariffs on US import cars.
It has been about two days since his dinner meeting with Chinese President Xi Jinping at the G20 summit on December 1, 2018. Even though the details of negotiation were not given from both sides, the source said that the meeting went well.
The US agreed to maintain 10% import tariffs on 200 billion dollar of Chinese goods, but will refrain from raising the rate to 25% as planned on January 1, 2019, and in exchange, the US wants an immediate start to talk on Trump’s biggest complaint about Chinese trade practices: intellectual property theft, cyber theft and non-tariff barriers. If there is no progress on structural reform after 90 days, 25% of tariffs will be imposed on Chinese goods.
According to the U.S. Department of Commerce’s International Trade Administration, the US exported $9.5 billion worth of new passenger vehicles and light trucks to China in 2017.