President Donald Trump on Sunday announced that China had agreed to rollback its tariffs on American automobiles below 40 percent.
“China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%,” Trump wrote on Twitter.
The announcement comes a day after Trump sat down with Chinese President Xi Jinping at the G20 Summit in Buenos Aires, Argentina for negotiation talks and dinner.
Earlier this year, China’s tariff’s on U.S. imported automobiles stood at 15 percent from 25 percent, Politico reported. It then raised tariff rates to 40 percent amid the escalating trade war with the U.S.
The two leaders reportedly agreed on a 90-day cease-fire, during which Trump will delay the scheduled U.S. tariff increase while the world’s two most-powerful economies negotiate over the administration’s complaints that China systematically steals trade secrets and forces the U.S. to hand over sensitive technology as the price of admission to the vast Chinese market.
In return, China agreed to buy what the White House called a “not yet agreed upon, but very substantial” amount of U.S. products to help narrow America’s gaping trade deficit with China.
The timetable for China’s lowering of tariffs below 40 percent remains unclear.
The Associated Press contributed to this report.