China Could Cut Tariffs On U.S.-Made Vehicles

China Could Cut Tariffs On U.S.-Made Vehicles

In a brief statement, the Chinese commerce ministry said Liu had spoken with Mnuchin and Lighthizer on a pre-arranged telephone call.

The tariff reduction benefits Daimler and BMW more than US automakers such as General Motors or Ford Motor Co.

On the day of the trade ceasefire, US-China relations took an unexpected turn with the high-profile arrest of Huawei Technologies chief financial officer Sabrina Meng Wanzhou in Canada.

Also, Trump said he expects China to soon cut tariffs on U.S. autos to 15 percent from the current 40 percent level.

On the bright side, China-based music streaming company Tencent Music Entertainment gained 7.7 percent in its New York Stock Exchange debut on Wednesday.

China retaliated with penalties on $110 billion of American goods but is running out of imports for retaliation due to their lopsided trade balance.

China has reportedly proposed cutting tariffs on US-made cars to 15%, the same tax levied on vehicle imports from other countries.

But by far the largest number of US -made cars shipped to China bear German names.

In retaliation, China raised the duty on United States auto imports to 40%, though it proceeded with the lower rate on imports from other countries.

Chicago Board of Trade soybean futures Sv1 scaled to highs not seen since midsummer when China imposed tariffs on US shipments in July.

Trump is in the midst of delicate negotiations with China after agreeing to a 90-day tariff truce with Xi at a December 1 dinner in Buenos Aires.

Ross told CNBC the moves by Beijing will "prove that President (Donald) Trump was right when he announced his summary of the talks" held recently with China's President Xi Jinping.

China on Wednesday made its first major purchases of US soybeans since President Donald Trump and his Chinese counterpart Xi Jinping struck a trade war truce earlier this month, providing some relief to USA farmers who have struggled to find buyers for their record-large harvest.

China is the largest buyer of USA soy, importing about 60 per cent of all US overseas shipments past year in deals valued at more than $12 billion.

In its 2016 guidance to local governments, the State Council, or cabinet, said local governments that promoted the implementation of "Made in China 2025" while encouraging industrial growth and manufacturing upgrading would be given priority support.

Sentiment had got a lift on Tuesday from reports China was considering cutting import tariffs on American-made cars to 15 percent from the current 40 percent. There was also no response from the White House nor the US Trade Representative's Office.

Trump also said he would shortly be providing formal notice to Congress that he will terminate the North American Free Trade Agreement, giving lawmakers six months to approve the replacement he signed Friday. Soybean exports to China accounted for around 10% of the total value of all U.S. agricultural exports previous year.

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