China is cutting the tariffs it charges on imported cars to 15%, giving a potential boost to foreign automakers in the world’s largest market.
China is cutting the tariffs it charges on imported cars, giving a potential boost to foreign automakers in the world’s largest market.
The Chinese Finance Ministry said Tuesday that it will cut import duties on passenger vehicles from 25% to 15%, starting July 1.
The announcement, which fulfills an earlier pledge by Chinese President Xi Jinping, comes just days after China and the United States agreed to a ceasefire in their recent trade hostilities .
President Donald Trump singled China’s import duties on cars for criticism last month, pointing out that they’re far higher than the 2.5% the United States charges on imported cars. “Does that sound like free or fair trade?” Trump tweeted. “No, it sounds like STUPID TRADE – going on for years!”
The following day, Xi announced during a closely watched speech that China would “significantly lower” auto tariffs and carry out a series of other measures that he portrayed as “a new phase of opening up” for the world’s second-largest economy.
Bill Russo, founder of Shanghai-based consultancy Automobility, called the lowering of car tariffs a “very significant move” that’s likely to give foreign automakers a better chance of competing on cost with local manufacturers.
