Hong Kong (CNN Business) — China said Friday it will temporarily reduce tariffs on imports of American-made cars as it tries to negotiate a trade deal with the United States.
Citing the meeting earlier this month between US President Donald Trump and Chinese leader Xi Jinping, the Chinese Finance Ministry said in a statement that it will remove the additional 25% tariffs on car imports from the United States for three months starting January 1. That will bring China’s tariffs on American-made cars to 15%, in line with those for cars made in other countries.
China also said it would suspend its 5% tariff on 67 other auto parts.
China imposed the additional tariffs on US cars in July and on some auto parts in September as part of its retaliation in the trade war between the two countries.
At their meeting in Argentina, Trump and Xi agreed to a temporary truce while they try to negotiate a broad trade deal over the next 90 days.
In its statement Friday, the Finance Ministry described the decision to remove the tariffs as a "concrete action" aimed at helping to bring about a "mutually beneficial new Sino-US trade order."
