China temporarily rolls back tariff hikes on US cars and auto parts

According to a statement released by the country’s Ministry of Commerce, China announced a 90-day suspension on the punitive tariffs placed on the US-made cars and auto parts.

For the three months starting January 1, cars imported from the US will no longer face an extra 25% in tariffs and the additional 5% tariffs on auto parts will also be scrapped. However, the original 15% tariffs on cars and 6% tariffs on auto parts will remain in place.

The easing of tariffs was seen as a move aimed at smoothing the US-China trade relations after both sides agreed on a temporary trade truce earlier this month. As part of the cease-fire, the US administration agreed to hold off a plan to raise tariffs on $200 billion worth of Chinese goods.