The Chinese government will consider a reduction of tariffs on US cars and trucks in a move which would ease tensions which have damaged the largest global automotive market. The proposal to cut the tariffs from 40% to 15% could be reviewed in the next few days. The deal has not been finalized.
President Donald Trump announced on Twitter that China agreed to ‘reduce and remove’ the 40% tariffs it put on US car imports into China. Stocks increased after the US and China agreed to a temporary trade truce on Saturday. The G20 summit agreement halts the increase in tariffs for 90 days to allow for talks.
Clashes between the US and China caused the Asia-Pacific Economic Cooperation summit to end in failure for the first time in history. The two regional powers were unable to agree on the trade language used in the final document. Papua New Guinea Prime Minister Peter O’Neill said the ‘entire world is worried’ about the tensions.
President Trump said the new United States-Mexico-Canada Agreement (USMCA) is ‘the biggest trade deal in the United States history.’ Trump claimed the deal which replaces NAFTA will bring thousands of jobs to North America. The deal covered $1.2 trillion worth of trade between the countries. It should be signed by the end of November.
$200 billion of Chinese products will be subject to increased tariffs by the US from 12:00 p.m. Beijing time on Monday. Products facing levies is almost half the value of imports from China last year. Meanwhile, $60 billion of goods from the U.S. will become subject to Chinese higher tariffs around the same time. About 70 percent of the value of goods China bought from America in 2017 face tariffs.
The founder of Chinese retail giant Alibaba, Jack Ma says the company will not create 1 million jobs in the US. The announcement comes amid the trade conflict between the US and China. Ma originally promised job creation during a 2017 meeting before President Trump’s inauguration. Ma said a friendly partnership ‘no longer exists.’
China responded to President Trump’s latest and biggest round of tariffs on Tuesday by imposing $60 billion in tariffs on American goods. Jack Ma the co-founder of Alibaba Group Holding Ltd. warned business and political leaders to prepare for a trade war with the US that will last longer and have a bigger impact than expected.
The Trump administration announced new tariffs on an additional $200 billion worth of Chinese imports on Monday in a move that will affect a wide range of consumer products. President Trump said the latest round of tariffs was in response to China’s ‘unfair trade practices’. China said they will retaliate against the latest wave of tariffs.
After President Trump suggested Ford start making its Focus Active in the US due to the administration’s high tariffs, Ford responded saying ‘it would not be profitable’ to build the car in the US. Trump tweeted on Saturday that Apple should make products in the US to avoid the tariffs on Chinese imports.
President Trump threatened to pull the US out of the World Trade Organization (WTO) in an interview on Thursday, saying he will withdraw ‘if they don’t shape up.’ The WTO serves the purpose of establishing rules for global trade and resolving conflict between countries. Trump says the body too often rules against the US.