China to suspend extra tariffs on US cars, parts

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BEIJING: China pressed on with its trade war truce with the United States on Friday, announcing it will suspend extra tariffs added to US-made cars and auto parts for three months from January 1.

The move is another sign that the ceasefire has not been derailed by the recent arrest in Canada of a top Chinese telecom executive at the behest of the United States.

Beijing raised tariffs on American-made cars and auto parts this summer by 25 percent in retaliation for US tariffs on 50 billion of Chinese goods.

“Suspension of the tariffs is a concrete measure to implement the consensus reached by the two heads of state,” said the announcement by the State Council’s Tariff Commission Office, noting it applied to 211 product codes.

US President Donald Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires on December 1 to a 90-day truce while they tried to find a solution to the escalating trade dispute. — AFP