China to Cut Auto Import Tariffs Amid Trade Consensus With US

Saul Bowman
May 25, 2018

He did not elaborate.

China's high tariff on vehicles - versus a 2.5 percent U.S. levy - has been a key focus of U.S. President Donald Trump's administration amid a simmering trade standoff between Washington and Beijing. The EU has so far been exempt from the tariffs, but its reprieve runs out June 1. The Chinese government had reportedly demanded that the USA roll back sanctions against ZTE as a prerequisite for continuing trade talks, which stalled last month (though the countries agreed yesterday to continue). But it failed to commit to shrink that deficit by any specific amount.

"I think Sec. Mnuchin is well aware of decisions being made by the Trump administration with regard to ZTE".

Rubio took to Twitter to vent his thoughts on a possible deal to save the company, while linking a Wall Street Journal article arguing that although the President has the strongest hand in trade negotiations when across the table with China as opposed to other American countries or Western Europe/Japan, it is China that appears to be winning having escaped most of the threatened tariffs and realistically having given very little in return.

In reality, the whole ZTE saga is a pawn in a much bigger game involving China, the U.S., trade wars, and surprise, surprise - North Korea. But he said that the sanctions were not meant to bankrupt the Chinese firm, which depends on US suppliers.

The final deal is likely to be finalized before or during U.S. Commerce Secretary Wilbur Ross's planned trip to Beijing next week.

The Trump administration is supposed to be negotiating with China.

Trump said that as a favour to the Chinese president, he is taking a look at it.

On May 13, Trump tweeted, "President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast". Trump later ordered Lighthizer to seek up to an additional $100 billion in Chinese products to tax.

"It is a clear message to even private companies that it is OK now to import US beans".

"What I envision is a very large fine of more than $1 billion. Our auto workers are going to be extremely happy".

Let's suppose that the only way to truly satisfy the Trump administration's protectionists, and hence to put a permanent end to the threat of a trade war, is for China to increase purchases of us goods by an annual $200 billion in order to zero out the trade deficit. Canada and Mexico received delays in the imposition of the tariffs as the countries renegotiate NAFTA. They have never delivered on 1 promise in the past.

Beijing used tariffs and other curbs over the past three decades to prod global auto brands to shift production to China and help develop the local industry.

Import tariffs for auto parts would be cut to 6 percent from mostly around 10 percent, the ministry said in a statement. "We are looking for a permanent exemption. So we'll see what happens". This is particularly critical when the violators are state-owned and -influenced, part and parcel of China's policies and practices created to strengthen its own national security innovation base, and essential tools of efforts to spread China's influence in other countries that pose national security threats to the United States. Exports are straining US pipeline and port capacity, and may be reaching a limit until capacity expansion underway are completed, one of the sources said.

The Federal Reserve is beginning to worry about the economic fallout from a trade war.

Upon conclusion of the meetings, the two nations released a joint statement.

Those worries included fears that the uncertainty raised by US involvement in a trade war could cause companies to postpone their plans to boost capital spending to expand and modernize their facilities.

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