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China slashes tariffs on imported cars

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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.

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