In a good will gesture to the United States, China has announced that it will be suspending additional tariffs for all imports of vehicles and automotive parts from the country. The move comes amidst the ongoing trade negotiations between the two nations, which have been seen by some as a step in the right direction to finally come to an amicable settlement. The decision to halt any added tariffs on imports also came right after the United States announced that it will be delaying its previously planned tariff hikes on Chinese products imported into the country.
China's State Council officially made the announcement over the weekend, mentioning that it would suspend its planned tariff hikes for all automotive parts and vehicles from the United States starting this month. However, the Council did not specify the effective dates of the suspension and whether or not it was permanent. China previously threatened to increase tariff rates for all vehicles and automotive parts coming from the United States by as much as 25 percent for up to three months. Fortunately, the measure was not implemented following a fragile truce between the two largest economies in the world.
According to the county's State Council, the decision was made to create a more pleasant atmosphere for the ongoing trade negotiations. China is apparently just returning the favor for the United States' decision to delay its own planned tariff hikes. The country is hoping for more positive exchanges in the ongoing bilateral trade negotiations. The Council, or cabinet, also expressed their willingness to aid the efforts to finally put an end to the trade tensions between both nations.
United States President Donald Trump mentioned last week that the trade talks with China have been going "very well," but he warned the country that he would only negotiate if there was a "great deal" on the table. US and Chinese trade officials recently wrapped up a two-day-long meeting in Beijing.
Among those that attending the negotiations were US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin. Both China and the United States had suspended any further trade actions while the US delegates met face-to-face with their Chinese counterparts. This included the suspension of increased tariffs on more than US$200 billion worth of Chinese goods coming into the United States. The talks are expected to resume next week with a Chinese delegation led by Vice Premier Lui He scheduled to fly to Washington to meet up once again with their counterparts.
