Tariff hikes suspended on US cars, auto parts

China announced a 90-day suspension on Friday, Dec. 14, of tariff hikes on US cars, trucks and auto parts, following its ceasefire in a trade battle with Washington that threatens global economic growth.

The suspension is China’s first step in response to President Donald Trump’s Dec. 1 agreement to suspend US tariff hikes for a similar 90-day period, while the two sides negotiate over American complaints about Beijing’s technology policy and trade surplus.

China has indicated it plans to move ahead with the talks despite strains over the arrest of a Chinese technology executive in Canada to face possible US charges related to a violation of trade sanctions on Iran.

Beijing will suspend a 25 percent import charge on cars and trucks and a five percent charge on auto parts, effective Jan. 1, the Finance Ministry announced.

The announcement helped give substance to Trump’s agreement with his Chinese counterpart, Xi Jinping, after prolonged uncertainty caused jittery global financial markets to swing wildly.

The Finance Ministry said the tariff suspension would apply to imports worth up to $126 billion, but that would be nearly 10 times the $13 billion of vehicles the United States exported to China last year.

China is the world’s biggest auto market but most US-branded vehicles sold there are manufactured in Chinese factories. /