China will continue to suspend extra tariffs on US vehicles, auto parts

In December, China said it would suspend additional 25 per cent tariffs on US-made vehicles and auto parts for three months, following a truce in a trade war between the world's two largest economies.
In December, China said it would suspend additional 25 per cent tariffs on US-made vehicles and auto parts for three months, following a truce in a trade war between the world's two largest economies.PHOTO: REUTERS

BEIJING (REUTERS) - China's State Council said on Sunday (March 31) that the country would continue to suspend additional tariffs on US vehicles and auto parts after April 1, in a goodwill gesture following a US decision to delay tariff hikes on Chinese imports.

The State Council, or cabinet, said the move was aimed at "continuing to create a good atmosphere for the ongoing trade negotiations between both sides".

"It is a positive reaction to the US decision to delay tariff hikes and a concrete action adopted (by the Chinese side) to promote bilateral trade negotiations," the State Council said.

"We hope the US can work together with China, accelerate negotiations and make concrete efforts towrds the goal of terminating trade tensions."

The government also said it would announce separately when the suspension would end.

In December, China said it would suspend additional 25 per cent tariffs on US-made vehicles and auto parts for three months, following a truce in a trade war between the world's two largest economies.

US President Donald Trump said on Friday that trade talks with China were going very well, but cautioned that he would not accept anything less than a "great deal" after top US and Chinese trade officials wrapped up two days of negotiations in Beijing.

 

US Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer were in the Chinese capital for the first face-to-face meetings between the two sides since Mr Trump delayed a scheduled March 2 increase in tariffs on US$200 billion (S$271 billion) worth of Chinese goods.

The talks are set to resume next week in Washington with a Chinese delegation led by Vice Premier Liu He.