China to Temporarily Lower Tariffs on US Cars Jan. 1
China will lower tariffs on U.S. cars to 15 percent from Jan. 1 to March 31, 2019, and will drop additional 5 percent tariffs on auto parts, as well.The Chinese government said on Dec. 14 it had been forced to raise tariffs on American cars to 40 percent in response to "U.S. trade protectionism," and that it hopes the rollback will give the two countries space to intensify negotiations in the direction of "eliminating all tariff increases." The reductions will last through March 31. China called the rollback on 211 tariff lines "a concrete measure to implement the consensus of the two heads of state," according to an informal translation of a news release from the State Council Customs Tariff Commission.
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President Donald Trump had repeatedly said this concession was coming, but told Fox News Dec. 13 that he wasn't satisfied. "It's not acceptable. Fifteen is still too high," he said (see 1812130051).
Ford Motor Company hailed the announcement. "As a leading exporter of vehicles from the U.S., we are very encouraged by China's announcement today to reduce tariffs on U.S. produced vehicles to 15 percent. We applaud both governments for working together constructively to reduce trade barriers and open markets. Last year, Ford exported nearly 50,000 U.S. built vehicles to support the growing auto market in China," said Joe Hinrichs, executive vice president and president of Global Operations.