China delays tariffs on US autos, other goods in trade deal

Published December 15, 2019
In this photo taken on November 09, 2017, US President Donald Trump shakes hand with China's President Xi Jinping at the end of a press conference at the Great Hall of the People in Beijing. — AFP/File
In this photo taken on November 09, 2017, US President Donald Trump shakes hand with China's President Xi Jinping at the end of a press conference at the Great Hall of the People in Beijing. — AFP/File

China's government says it will postpone planned punitive tariffs on United States-made automobiles and other goods following an interim trade deal with Washington.

Sunday's announcement came after Washington agreed to postpone a planned tariff hike on $160 billion of Chinese goods and to cut in half penalties that already were imposed.

China hopes to work with the US on the basis of equality and mutual respect to properly address each other's core concerns and promote the stable development of Chinese-US economic and trade relations, said a Cabinet statement.

US Trade Representative Robert Lighthizer said that under Friday's agreement, China committed to buy $40 billion of American farm products over the next two years. He said China also promised to end its long-standing practice of pressuring companies to hand over their technology as a condition of market access.

Beijing had planned to impose 25 per cent duties on American-made autos on Sunday, which would have raised the total charge to 40pc. Hardest hit were Germany's BMW AG and Daimler AGs Mercedes unit, which ship US-made SUVs and other cars to China.

Other goods were targeted for 10pc and 5pc penalties.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Budget for stabilisation
Updated 13 Jun, 2024

Budget for stabilisation

The proposed steps lack any “disruptive policy changes", especially to "right-size" the govt, and doubts remain on authorities' ability to enforce new measures.
State of the economy
13 Jun, 2024

State of the economy

THE current fiscal year is but another year lost. Going by the new Pakistan Economic Survey, which maps the state of...
Unyielding onslaught
Updated 13 Jun, 2024

Unyielding onslaught

SEVEN soldiers paid the ultimate price in Lakki Marwat on Sunday when their vehicle was blown up in an IED attack,...
X diplomacy
Updated 12 Jun, 2024

X diplomacy

Both states can pursue adversarial policies, or come to the negotiating table and frankly discuss all outstanding issues, which can be tackled through dialogue.
Strange decisions
12 Jun, 2024

Strange decisions

THE ECP continues to wade deeper and deeper into controversy. Through its most recent decision, it had granted major...
Interest rate cut
Updated 11 Jun, 2024

Interest rate cut

The decision underscores SBP’s confidence that economic stability is gaining traction.