US, China Call 90-Day Truce in Tariff War
U.S. and Chinese officials announced a 90-day pause on steep tariffs the world’s two largest economies imposed upon each other’s exports, including new vehicles, systems and parts, in a sudden de-escalation that could lead to a long-term agreement.
Combined Trump administration-imposed tariffs of 145% will be reduced to 30% for the duration of the pause. China’s effective tariff of 125% of on U.S. imports will be reduced to 10%.
An official joint statement posted to WhiteHouse.gov says negotiations were undertaken in recognition of “the importance of a sustainable, long-term and mutually beneficial economic and trade relationship.”
China-built vehicles such as the Buick Envision, Lincoln Nautilus, Polestar 2 and Volvo S90 represent a small portion of the U.S. import market. But tens of thousands of U.S.-built units are sold in China, led by BMW, Ford, General Motors and Tesla, though volumes have steadily declined in recent years.
Last week, the White House announced tariffs on vehicles, steel and aluminum from the United Kingdom will be reduced from 25% to 10%.
