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Is China reducing tariffs for US cars?

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China is apparently opposed to the US in the trade dispute. US President Trump tweeted that Beijing wants to reduce tariffs on US import cars. This could also benefit German manufacturers.

According to US President Donald Trump, China is reducing import duties on US import cars. The Beijing government has pledged to „reduce and remove“ the charges, which are currently at 40 percent, Trump said via the short message service Twitter.

How exactly reduction and reduction will take place, Trump did not explain. There has been no response from the US government and automakers so far. However, on Monday there will be a longer-term meeting between government representatives and car producers. Should the Chinese government actually reduce tariffs significantly, not only American manufacturers should benefit from it, but also BMW, which produces SUVs of types X3-6 at its US plant in Spartanburg, US, and from there exported.

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„Incredible relationship“

On Saturday, Trump and China’s President Xi Jinping had agreed to a 90-day hiatus in the trade dispute over a two-and-half-hour dinner on the sidelines of the G20 summit in Buenos Aires. Xi and he have an „incredible relationship“ that will make progress in the trade dispute, Trump said at the table.

The US wants to waive during this time on tariff increases, China in return to buy more US products. In addition, negotiations should continue on issues such as the protection of intellectual property or technology transfer. According to the Chinese Foreign Ministry, the goal of the negotiations is to eliminate all special duties imposed.

Customs worth hundreds of billions of dollars

For months, the two largest economies in the world have been engaged in a bitter dispute over bilateral trade relations. The United States feel disadvantaged by a trade deficit with China and had special duties on Chinese goods in the amount of 250 billion US dollars introduced.

Beijing, on the other hand, is currently levying US $ 100 billion in import duties on US goods. Trump had threatened further duties worth 267 billion US dollars to increase the pressure. There was no question of that after the meeting in Buenos Aires.

The IMF expects that global economic growth would fall by 0.75 percentage points if all tariffs worldwide announced were enacted – would, however, reduces the restrictions by 15 percent, this could lead to an increase in growth by half a percentage point.