China suspends tariff hikes on US$126B of U.S. goods
China is making good on a promise to suspend tariff hikes on cars, trucks and auto parts for 90 days starting January 1
BEIJING – China has announced a 90-day suspension of tariff hikes on US$126 billion of U.S. cars, trucks and auto parts following its cease-fire in a trade battle with Washington that threatens global economic growth.
The tax agency said the suspension that takes effect Jan. 1 is intended to carry out the agreement reached by Presidents Donald Trump and Xi Jinping during a Dec. 1 meeting in Argentina.
The agency said Beijing will suspend a 25 per cent import charge on $66 billion of cars and trucks and a 5 per cent charge on $60 billion of auto parts.
Trump agreed earlier to suspend planned U.S. tariff hikes due to take effect Jan. 1 on Chinese imports while the two sides negotiate.