An Agreement Reached on US and China Auto Tariffs?
After teasing automakers throughout last week and over the weekend, the U.S. and China may have reached an agreement on auto tariffs.
As of Nov. 29, Supply Chain Dive reported the U.S. and China will look to equalize tariffs. U.S. Trade Representative Robert Lighthizer called Chinese tariffs "egregious," citing the 40% tariff on U.S. imports and the U.S.' 27.5% tariff on Chinese imports. Ford also reported a $1 billion loss in profits because of the auto tariffs, while BMW came in with a similar statement as the company cut its profit forecast due to Chinese tariffs. As a response to this backlash, the White House said Trump and Chinese President Xi Jinping agreed to a ceasefire in the trade war Dec. 1.
Late on Dec. 2, Trump tweeted that China agreed to "reduce and remove tariffs on cars coming into China from the U.S.," but he did not offer any specifics about what this agreement means. He concluded the tweet by saying, "Currently the tariff is 40%;" however, he did not specify what the new tariff agreement will be.
Negotiating may continue, as both countries' residents and companies wait for an official statement with black-and-white details.