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China to “Significantly Lower” Tariffs on Vehicle Imports

Move could help defuse threat of trade war, but unclear how much will change.

by on Apr.10, 2018

Tesla CEO Musk is one of those celebrating China's plans to sharply reduce import auto tariffs.

Foreign automakers have long complained about the hefty tariffs levied on vehicles exported to China, but Chinese President Xi Jinping on Tuesday said his government plans to “significantly lower” duties this year.

The move comes at a time when tensions between the U.S. and China have built to the point where many observers have been fearing the start of a potentially devastating trade war. Just Monday, U.S. President Donald Trump complained in a tweet about “STUPID TRADE” policies that allowed the Chinese to levy a 25% tariff on imported vehicles, compared to the 2.5% duties imposed by the U.S. on most foreign-made vehicles.

More Than Just Headlines!

The Chinese president’s comments leave a lot of questions to be answered before it can be clear what impact the proposed move will have on foreign automakers, but at least one U.S.-based manufacturer is pleased, Tesla CEO Elon Musk quickly tweeting, “This is a very important action by China. Avoiding a trade war will benefit all countries.”

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