POST Online Media Lite Edition



 

China will suspend tariff hike on U.S. automotive sector

Staff Writer |
China announced Friday the suspensión for three months of additional tariffs on U.S. cars and its components, in coincidence with the truce period to the trade war between both powers.

Article continues below




The Ministry of Finances explained in a brief communique which from January 1 to March 31, 2019 will cancel 25 percent of taxes applied to 144 products of that sector.

The Ministry of Trade advanced that Beijing and Washington reached new consensus in the sectors of agriculture, energy and automotive.

Those movements follow instructions from president Xi Jinping who after dialoging last December 1st with his U.S. peer, Donald Trump, oriented to go forward to an accord that leads to raise the tariffs applied since last July.

Both countries committed also to normalize the relations and end the trade war between them.

Xi and Trump personally went to a negotiating table in the context of the G-20 summit in Argentina, to analyze a bilateral controversy that keeps the entire planet uneasy.

The awaited meeting ended with a truce of 90 days during which they stopped the imposition of restrictive measures and damaging tariffs on mutual imports.

They also immediately decided to find solutions agreed by consensus for conflicting issues but on the base of respect, equity and benefit for both sides.

China committed to solve the worries that generate the deepening of its reform and opening policy, while the U.S. also will correct the worries of Beijing in economic and trade policy.

Nevertheless, Xi Jinping insisted that cooperation with shared benefits is the best option for the interests of both powers, to maintain peace and world prosperity.

That was the first time the statesmen were face to face after the start of the conflicto at the beginning of 2018. Before they had only discussed the issue over the phone.

Since they started negotiations last May there were moments of progress, which for a brief time gave a breath in the conflicto that unleashes the trade war.

But the truces alternated with retreats by unilateral decisions of the United States, to which China responded with equal magnitude in defense of its interests and enterprises.

Now the global market equally recovered a relative calm after months of uncertainty and financial collapse but the doubt lingers on of again falling into a vicious circle thanks to the bad precedent of previous attempts to stop the controversy Washington-Beijing disappeared from one moment to the other.


What to read next

Beijing strikes back after Trump sets tariffs on $50 billion worth of Chinese goods
China to reduce auto tariffs after Trump criticism
India to raise import tariffs on electronic and communication items