China has announced today that it would be reducing tariffs on U.S.-built cars and car parts from 40 to 15 percent beginning on January 1st. This reduction will last for three months as the U.S. and China begin hashing out a new trade deal. We first reported the reduction of the tariffs earlier this week.
China's Ministry of Finance posted on their website said it hopes the talks between the two can go quickly and remove "all additional tariffs on each other’s goods" that were brought forth before the current trade-war.
“China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!” President Donald Trump wrote on Twitter in response to the announcement.
China raised the tariffs on U.S.-built vehicles and parts back in July in response to the U.S. raised tariffs on Chinese-built vehicles and parts to 27.5 percent. The move caused a number of headaches for automakers which had to increase prices on models sold in China or change up various plans. Various automakers and groups welcomed the news.
At the moment, the U.S. hasn't announced any plans to reduce the 27.5 percent tariff on Chinese-built vehicles and parts.