China delays tariffs on US autos, other goods in trade deal
Washington also agreed to postpone a planned tariff hike on US$160 billion of Chinese goods
BEIJING—China’s government says it will postpone planned punitive tariffs on U.S.-made automobiles and other goods following an interim trade deal with Washington.
Sunday’s announcement came after Washington agreed to postpone a planned tariff hike on US$160 billion of Chinese goods and to cut in half penalties that already were imposed.
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“China hopes to work with the United States on the basis of equality and mutual respect to properly address each other’s core concerns and promote the stable development of Chinese-U.S. economic and trade relations,” said a Cabinet statement.
U.S. Trade Representative Robert Lighthizer said that under Friday’s agreement, China committed to buy $40 billion of American farm products over the next two years. He said China also promised to end its long-standing practice of pressuring companies to hand over their technology as a condition of market access.
Beijing had planned to impose 25% duties on American-made autos on Sunday, which would have raised the total charge to 40%. Hardest hit were Germany’s BMW AG and Daimler AG’s Mercedes unit, which ship U.S.-made SUVs and other cars to China.
Other goods were targeted for 10% and 5% penalties.