Trump says China to cut auto tariffs in trade truce

Trump says China to cut auto tariffs in trade truce

Trump has appointed Lighthizer, one of the administration's most vocal China critics, to oversee the new round of trade talks with China, a White House official and a US official told Reuters on Monday.

China will roll back tariffs on US-made cars, US President Donald Trump said, unveiling another potential breakthrough in a trade war truce that cheered stock markets on Monday.

In a surprise announcement tweeted Sunday night, Trump also said China would "reduce and remove" tariffs of 40 percent on cars, though Beijing has yet to confirm the move. Shares are advancing in Asia following the meeting between Presidents Donald Trump and Xi Jinping. China has retaliated with duties on some $110bn of U.S. goods over the same period.

Trump last week ordered a separate review of China's 40 per cent tariff on auto imports from the USA, 25 percentage points of which are the result of Chinese retaliation against Trump's own tariffs on imports from China.

The two sides also agreed to begin discussions on how to resolve issues of concern, including intellectual property protection, non-tariff trade barriers and cyber theft.

In return, China is to purchase "very substantial" amount of agricultural, energy, industrial and other product from the US.

But as trade tensions ratcheted up with the USA this summer, Beijing retaliated by slapping vehicles imported from the USA with an extra 25 per cent tariff, bringing the total tariff rate to 40 per cent.

"(Parties) agreed not to impose new additional tariffs", the Chinese foreign ministry said in a statement.

As a political scientist following the escalating tensions, I believe that the statements coming out of the G-20 meeting reveal that a wide gap still separates Xi and Trump, both in terms of what matters most to them and their approach to getting it.

More news: Friends officially leaving Netflix on January 1

President Trump's trade war with China is on hold.

The increases come after the United States and China said they had agreed to not increase tariffs for 90 days to allow for talks.

One expert said China would have to address United States complaints about China's forced transfer of intellectual property rights - a major issue at the core of a USA "301" trade investigation - for Washington to drop its tariffs.

"It prevents the economic and trade frictions from expanding and opens new prospects for cooperation", Geng said.

Trump, on Air Force One leaving Buenos Aires, told reporters that if a deal happens with China, "it goes down as one of the largest deals ever made".

But the US leader's tweet alone was sufficient to boost stock prices for European auto giants Daimler AG and BMW, the Reuters news agency noted on Monday. "This is the first time that we have a commitment from them that this will be a real agreement".

"This is probably the best case scenario that markets were hoping for", Rakuten Securities Australia, a brokerage based in Sydney, stated in a note.

The president continued by saying his personal relationship with Xi is very strong, and praised him for reaching a massive and positive trade deal. Will President Xi be willing to encourage U.S. technology firms to set up and access similar benefits to Chinese firms, which could possibly threaten the 2025 vision?

A more upbeat assessment was published in the state-owned Global Times, which is run by the People's Daily, the mouthpiece of the Communist Party.

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