China to Cut Auto Tariffs on July 1 as Trade Tensions Ease
Japan, Russia, Turkey bring potential US tariff retaliation to $3.5 bn
China announced on Tuesday that it would cut tariffs on auto imports from July 1, the latest sign of a thaw in trade frictions with the United States, Agence France-Presse reported. Beijing has announced a flurry of liberalisations and reforms since coming under fire from the Trump administration and some European politicians for its protectionist policies. The planned reduction in import duties from 25 percent to 15 percent is a boon for international carmakers keen to grow sales in the world’s largest auto market but may fall short of fulfilling US President Donald Trump’s expectations that Beijing match US tariffs of 2.5 percent.
Demands reportedly put to Beijing by Washington at the start of trade talks called on China to lower all tariffs to at least match those of the US. Trump has been following the issue closely and on Monday tweeted: “On China, Barriers and Tariffs to come down for first time.” The announcement in Beijing came days after Vice Premier Liu He and US Treasury Secretary Steve Mnuchin led negotiations in Washington which ended with an agreement to pull back from the brink of a trade war. The two sides agreed to refrain from imposing tariffs threatened on billions of dollars’ worth of goods that would have dented US-China
trade. But even as Trump has talked up the agreement, writing on Twitter that China “will purchase from our Great American Farmers practically as much as our Farmers can produce,” other members of his administration have split on the detente and said tariffs were still on the table. “Real structural change is necessary,” US Trade Representative Robert Lighthizer said of China’s economy in a widely cited statement released Sunday. Also, Japan, Russia and Turkey have warned the United States about potential retaliation for its tariffs on steel and aluminum, the World Trade Organization said on Tuesday, bringing the total US tariff bill to around $3.5 billion annually. The three countries detailed their compensation claims in notifications to the world trade body, following similar moves by the European Union, India and China. Each showed how much the disputed US tariffs would add to the cost of steel and aluminum exports to the United States, based on 2017 trade. Russia said the US tariffs, which President Donald Trump imposed in March, would add duties of $538 million to its annual steel and aluminum exports. Japan put the sum at $440 million. Turkey added a further $267 million.