China is reportedly making moves to significantly reduce its tariffs on U.S. autos, more than a week after President Trump claimed there had been a major breakthrough in negotiations that ended in zero tariffs on American vehicles.
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According to Bloomberg News, China suggested slashing the tariffs to 15 percent from its current 40 percent, bringing the U.S. closer in line with what other countries pay. The proposal has been submitted to China’s cabinet to be reviewed in coming days, and therefore could still change.
Auto stocks popped on the news, with Ford shares climbing nearly 2 percent and General Motors up more than 3 percent.
Last week, Chinese officials hailed a “very successful” trade meeting with the U.S., and said they would move quickly to begin implementing “specific issues” that had been agreed upon, a spokesperson for the Chinese Ministry of Commerce told reporters in a statement, which was later published on its website.
Last Monday, Trump tweeted that China had agreed to remove tariffs on American autos, but White House aides struggled to explain specifics about the deal, according to the Associated Press. The spokesperson did not say specifically what would be included in the agreement, but noted that specific issues that have reached consensus will be first and foremost.
China upped its tariffs on American vehicles to 40 percent in June, retaliating against a slew of tariffs imposed on Chinese products by the U.S. China imports about $13.5 billion worth of vehicles from North America each year, according to Bloomberg.