China suspends tariff hikes on U.S. vehicles in trade war cease-fire

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The latest announcement on the planned tariff suspension followed China's first major purchase of U.S. soybeans since U.S. President Donald Trump and Chinese leader Xi Jinping's landmark talks on trade in Argentina on December 1.

The temporary tax reduction for U.S. auto imports comes as China heads for its very first annual vehicle sales decline in 28 years amid the trade war and an economic slowdown that's undermining consumption momentum. "It could happen, and rather soon!" he tweeted on Friday (local time).

China and the United States have been involved in a trade war since Trump stated in June that $50 billion worth Chinese goods would be subject to 25 percent tariffs in a bid to fix the US-Chinese trade deficit.

Mr Trump said the climbdown showed that China had been forced to blink in their on-off spat, after months of heavy USA tariffs on Chinese imports.

Tesla, which doesn't have local Chinese production yet, was among the first USA auto makers to raise prices in China, due to the heated trade tariff war in the summer.

But just days later, China imposed new additional tariffs of 25% on American-made passenger vehicles as the trade war with the United States escalated.

BMW and Daimler have been hardest hit by the additional levies, shipping large numbers of sport utility vehicles from plants in the U.S. to China.

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The latest announcement on the planned tariff suspension followed China's first major purchase of United States soybeans since Trump and his Chinese counterpart Xi Jinping's landmark talks on trade in Argentina on December 1.

China's economy has been slowing and the trade war hasn't helped.

US President Donald Trump welcomed the announcement. -China relations. US authorities had requested the Canadian government to detain Wanzhou on accusations that she misled financial institutions and caused them to violate Iran sanctions. "We applaud both governments for working together constructively to reduce trade barriers and open markets".

Senior U.S. officials learned about the tariff reduction from a phone call from Chinese trade negotiators.

The government is also considering various options for how to handle the 25 per cent retaliatory tariffs on American corn that China adopted in July, the people said.

But another China-based auto industry expert, Jacob George, vice president and general manager of the Chinese branch of USA marketing intelligence company J.D. Power, said last week that the third-party data about Tesla's plunging sales was accurate, as sales had suffered from frequent price changes in the latter half of this year.

In another signal that China may move to satisfy Mr Trump, the country's top legislature announced last Friday that it would hold a session from Dec 23 to Dec 29 to discuss legislation on foreign investment and draft revisions to the patent law.

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