China’s Xi Jinping pledges to cut vehicle tariffs amid US trade clash

Currently, U.S. trade regulations state that a country which does not have a trade agreement with the United States will pay a 2.5 percent import duty tax for passenger vehicles imported into the country, and a 25 percent tariff for light-duty and commercial trucks, as well as vans. It characterized those tariffs as a penalty for Beijing’s forcing American companies to hand over technology to gain entry to China’s market. The announcement is a positive sign that Beijing is willing to comply with President Trump’s tough talk on worldwide trade deals. They can not continue to break the laws of trade as they have for over 20 years. A Bloomberg News report that Beijing was considering the tactic was followed by the Chinese currency weakening by as much as 0.2 percent to 6.3186 against the US dollar in the onshore market on Monday.

American investment in China, meanwhile, was basically flat at $14 billion last year from $13.8 billion the year before, it said.

“China does not seek a trade surplus”, said Xi to an audience of Chinese and foreign businesspeople.

In his speech, Xi said China will take the initiative to expand imports this year and “work hard” to import products that are required by the population. “A deal will be made on trade”.

“He said “lower” auto import tariffs, which is the opposite of the trend in recent weeks from both United States and China in “raising” tariffs”.

“Very thankful for President Xi of China’s kind words on tariffs and automobile barriers”, Trump said on Twitter. -China deals struck in 2016, according to a new report from New-York-based consultancy firm, Rhodium Group, and the National Committee on U.S.

China retaliated by unveiling planned levies on $50 billion worth of major United States exports.

But Trump hit back again late Thursday, instructing trade officials to consider tariffs on an additional $100 billion in Chinese imports. A list of products has yet to be identified.

A few hours later, Trump returned to tougher talk with an early-morning tweet railing against China’s duties on U.S. cars.

The remarks by Liu – who visited Washington in February and is taking the lead on the government’s response to Trump’s trade moves – suggest the dispute won’t be resolved easily.

“China’s new measures will benefit many trading partners, but [those measures] won’t apply to those countries that violate the rules of the WTO and wage trade wars against others!” this commentary exclaimed, without elaborating. “It will not have a direct market effect, but it could help to lower the temperature of the ‘trade war'”. Our objective is to continue to have discussions with China.

“This trade conflict was initiated by the U.S. alone and it is entirely the one to blame”, he said.

“Great future for both countries!” he said.

Gary Hufbauer is with the Peterson Institute for International Economics.

Overtures by the administration of U.S. President Donald Trump towards strengthening ties with the island have ratcheted up the tension.

Hufbauer noted that, “The short-term impact would be highly adverse”. None of the announced duties have been implemented yet, offering room for negotiation. George Grow was the editor. Write to us in the Comments section, and visit our Facebook page.