China to lift US motor tariffs

China has announced a 90-day suspension of tariff hikes on $126 billion (£100bn) of US cars, trucks and motor parts following its ceasefire in a trade battle with Washington.

The tax agency said the suspension is intended to carry out the agreement reached by presidents Donald Trump and Xi Jinping during a December 1 meeting in Argentina.

The agency said Beijing will suspend a 25 per cent import charge on $66bn of cars and trucks and a 5% charge on $60bn of motor parts. Mr Trump agreed earlier to suspend planned US tariff hikes due to take effect on January 1 on Chinese imports while the two sides negotiate a potential solution.