Bloomberg: the Chinese government is preparing to reduce duties on cars from the US from 40% to 15%

At the same time, according to the Agency’s sources, this initiative is still under discussion and may be subject to revision.

The Chinese government is preparing to reduce to 15% from the current 40% duty on the import of cars from the United States under the agreement, which was previously announced by the US President Donald Trump, Bloomberg reported on Tuesday.

According to the Agency, the proposal to reduce duties on cars from the United States was submitted to the state Council of China. This measure will be considered in the coming days. This initiative is under consideration and may be subject to revision, sources said.

China raised duties on the US-imported cars to 40% in July as a response to the US President’s administration raising duties on Chinese goods. Currently, the US duty on cars imported from China is 25.5%.

In 2017, China imported cars worth $51 billion, including from the US – $13.5 billion. During the past year, 280,208 thousand cars were imported from the US to China, or 10% of the total number of imported cars. This figure takes into account machines produced in the United States by foreign manufacturers such as the German BMW.

Trump has repeatedly stated that he doesn’t like a giant trade deficit in trade with China, reaching, according to him, $500 billion. From September 24 in the US entered into force a customs duty of 10% on imports from China goods which total cost is estimated at $200 billion. China responded with a tariff of 5% to 10% on imports from the US amounting to $60 billion. Trump expressed the intention to begin a new phase of implementation of restrictive measures, and if Beijing decides to go on reciprocal steps to impose additional tariffs applied to Chinese goods and services.

On December 1, Trump and Chinese President XI Jinping during their meeting on the sidelines of the G20 summit in Argentina agreed to make efforts to conclude a new trade agreement in 90 days. At the same time, Trump agreed not to raise tariffs for Chinese products in the amount of $200 billion from 10% to 25% from January 1. After a meeting with XI Jinping at the summit in Buenos Aires, Trump in his Twitter wrote that the Chinese authorities agreed to first reduce and then cancel the duties on the import of American-made cars.