China agrees to slash car tariffs — but it's still six times more than the U.S. pays
At 15 percent, Chinese automotive tariffs will still be six times higher than what the U.S. charges on almost all vehicles.
China is slashing tariffs on imported passenger vehicles, cutting the tax from 25 percent to 15 percent in response to increasing trade pressures from President Donald Trump and his trade advisors — but that tax is still six times higher than what the U.S. assesses on imported cars, and Trump said he is "not satisfied" with the trade talks, telling White House reporters Tuesday that the negotiations were just a start.
Trump's comments came as South Korean President Moon Jae-in visited the White House to discuss next month's summit on North Korea.
The reduced tariff, which will come into effect July 1, comes as the U.S. and China move to head off the threat of a trade war. Last month, Trump pointed specifically to automobiles in a series of tweets, one of which lambasted what he called “STUPID TRADE.”
China is the world’s largest automotive market, with sales rising to about 24 million vehicles in 2017 compared to 17.2 million in the United States.
Imports, however, are barely a single-digit share of the Chinese market, with American-made vehicles generating just $10.5 billion in sales in 2017, or around 300,000 vehicles, according to U.S. trade data.
Connect With Us