China to Trim Tariffs on Vehicle Imports

Sam McEachern
by Sam McEachern

Chinese president Xi Jinping pledged to reduce tariffs on vehicle imports and ease limits on foreign ownership in the automotive industry during a speech in China’s Hainan province Tuesday.

Jinping briefly outlined a plan to reduce vehicle tariffs in China and make it easier for foreign automakers to operate within the country as part of “a new phase of opening up.” His statements follow recent remarks by U.S. president Donald Trump, which targeted China’s 25% tariff on imported foreign cars. The Trump administration argues China’s high tariffs are not fair, as the U.S. charges just a 2.5% tax on foreign automobiles.

SEE ALSO: China’s Lynk & CO to Build Cars for Europe in Belgium

The stock market reeled as Jinping and Trump went back-and-forth over auto import tariffs in previous weeks. Jinping’s recent statements were encouraging, though, with Toyota and Honda shares spiking roughly two percent Tuesday. Experts believe the US-China trade dispute will require further ironing out, but the Chinese president appears to want to put an end to the widely publicized trade row.

Jinping also warned against the US and China adopting a “Cold War mentality,” in regards to trade and called for open dialogue between the two superpowers going forward.

[Source: ABC]

Sam McEachern
Sam McEachern

Sam McEachern holds a diploma in journalism from St. Clair College in Windsor, Ontario, and has been covering the automotive industry for over 5 years. He conducts reviews and writes AutoGuide's news content. He's a die-hard motorsports fan with a passion for performance cars of all sorts.

More by Sam McEachern

Join the conversation
2 of 4 comments
  • Smartacus Smartacus on Apr 10, 2018

    Only one side can go full isolationist against the entire globe if necessary. While the other can go full isolationist and have their citizens overthrow them

  • Darthineus Darthineus on Apr 15, 2018

    Trump is nothing if not the president with the most "open dialogue" and transparency ever. Many would say way too much so. Sorry lifetime dictator Xi, but Trump telegraphed this punch about two years ago. Try another deflective excuse.