The Chinese government has said it would cut import tariffs on US-made vehicles and components for three months from the beginning of next year, according to media reports.
The proposed cuts, which would reverse the 25% tariff hike made last July, are seen as part of a temporary 'truce' in the trade war between the US and China.
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The announcement, made by the Chinese finance ministry, would effectively return import duties on 144 vehicles and auto component items to their pre-July 2018 level of 15% until the end of March 2019, from 40% at present.
This is when the US and Chinese governments are scheduled to hold negotiations with a view to cooling the escalating trade war between the two countries.
While all vehicle manufacturers in China rely overwhelmingly on local production for their domestic sales, US and German manufacturers still export significant vehicle volume from the US to China every year.
They will benefit from these temporary measures in the first quarter of next year, including Tesla and BMW which have already said they will make significant price cuts in response to the import tariff suspension.
Ford, which exported around 50,000 vehicles to China last year, welcomed the tariff cuts and "applauded both governments' efforts to work together constructively to reduce trade barriers and open markets".
