Wednesday February 20, 2019
Home Lead Story China Agrees ...

China Agrees To Cut Tariffs on US Cars: Donald Trump

"Given the complexity of interactions between the two economies, the rest of the world will still be holding its collective breath," said the official China Daily in an editorial

0
//
Donald Trump, U.S.
Donald Trump. VOA

China has agreed to cut tariffs on cars it imports from the US, President Donald Trump has said, after he negotiated a truce in the trade war with Beijing. The announcement boosted the financial markets.
“China has agreed to reduce and remove tariffs on cars coming into China from the US. Currently the tariff is 40 per cent,” Trump tweeted on Sunday.

The outcome of the Trump-Xi meeting boosted financial markets in Asia Pacific on Monday. The benchmark Shanghai Composite index led the way with a rise of 2.57 per cent while Hong Kong was up 2.45 per cent and Tokyo closed 1 per cent better off. Australia’s benchmark ASX200 index finished the day up 1.84 per cent.

The increases paved the way for sharp rises on European and US exchanges later in the day with futures trade seeing the FTSE100 opening up by 1.6 per cent and the Dow Jones industrial average on Wall Street expected to leap 2 per cent.

But Donald Trump didn’t give details about the car tariffs or when the change would happen and what the new tariff level would be, CNN reported. There was no immediate response from the Chinese government on cutting car tariffs.

Trump’s announcement came shortly after he and his Chinese counterpart Xi Jinping announced a breakthrough during the G-20 summit in Buenos Aires on Saturday, temporarily pausing the trade row between the world’s two largest economies that saw tit-for-tat tariffs imposed on each other’s products.

Trump, Government, Afganistan
Trump says China to cut tariffs on US cars; markets rise. VOA

Neither country had mentioned the car tariff issue in their official read-outs of the Trump-Xi weekend meeting in which Washington agreed to hold off on his threat to impose 25 per cent tariffs on $200 billion worth of Chinese goods from January 1, leaving them at the current 10 per cent rate.

In return, Beijing agreed to purchase more agricultural products from US farmers immediately.

Earlier this year, China lowered its tariffs on foreign car imports from 25 per cent to 15 per cent. However, it later imposed new additional tariffs of 25 per cent on American-made passenger vehicles after Trump raised the tariff on Chinese autos from 2.5 to 27.5 per cent.

Also Read- To Help Poor Countries Adapt To Global Warming, World Bank Doubles Its Funding

The US leader called his deal with Xi “incredible”. “It goes down, certainly – if it happens, it goes down as one of the largest deals ever made,” he told reporters.

Meanwhile, the Chinese state media warned that while the new “consensus” was a welcome development and gave both sides “breathing space” to resolve their differences, there was no “magic wand” that would allow the grievances to disappear immediately.

“Given the complexity of interactions between the two economies, the rest of the world will still be holding its collective breath,” said the official China Daily in an editorial. (IANS)

Next Story

U.S. President Donald Trump Calls On California For Challenging Border Wall Declaration

"President Trump treats the rule of law with utter contempt," California Attorney General Xavier Becerra said. "He knows there is no border crisis. He knows his emergency declaration is unwarranted, and he admits that he will likely lose this case in court."

0
Donald Trump
President Donald Trump speaks during an event at the White House to declare a national emergency in order to build a wall along the southern border, Feb. 15, 2019, in Washington. VOA

U.S. President Donald Trump targeted the western U.S. state of California Tuesday for its leading role in a multi-state lawsuit contesting his declaration of a national emergency to obtain funding for his proposed wall along the U.S.-Mexico border.

On Twitter, Trump cited California Governor Gavin Newsome’s cancellation last week of a high-speed rail line between Los Angeles and San Francisco, claiming, without evidence, the cancellation was due to “world record setting” cost overruns.

Trump followed with another tweet after 16 states sued his administration over his declaration of a national emergency to get funds to build a border wall. Attorneys general, led by California, filed their lawsuit late Monday in the U.S. District Court for the Northern District of California.

The complaint alleges the emergency declaration is illegal and unconstitutional, and that it harms the states and their residents by taking money away from anti-drug programs, military construction projects and other law enforcement efforts.

FILE - California Attorney General Xavier Becerra (R), accompanied by Gov. Gavin Newsom, announce their intent to sue the Trump administration over an emergency declaration to fund a border wall, Feb. 15, 2019, in Sacramento, California.
California Attorney General Xavier Becerra (R), accompanied by Gov. Gavin Newsom, announce their intent to sue the Trump administration over an emergency declaration to fund a border wall, Feb. 15, 2019, in Sacramento, California. VOA
 

The lawsuit asks the court to permanently prohibit the Trump administration from diverting funds from elsewhere in the government to construct a border wall, or to build a wall without Congress appropriating money for that purpose.

“President Trump treats the rule of law with utter contempt,” California Attorney General Xavier Becerra said. “He knows there is no border crisis. He knows his emergency declaration is unwarranted, and he admits that he will likely lose this case in court.”

Becerra accused Trump of engaging in “theater” and hyping a crisis because he failed to get Congress or Mexico to pay for the wall.

An environmental group and three Texas landowners across whose property the wall would be built have already filed lawsuits.

The White House has not yet responded to the states’ lawsuit. But it had anticipated court challenges to the emergency declaration.

Trump said he declared the national emergency because he was unhappy with the amount of money Congress authorized for border security.

“I want to do it faster,” he said when he announced his declaration last week. “I could do the wall over a longer period of time. I didn’t need to do this. But I’d rather do it much faster” — words that could come back to haunt the administration in court.

Journalist Bob Woodward, who chronicled the first year of the Trump presidency in his best-selling book “Fear,” told Fox News he believes Trump made the national emergency declaration because “he looks strong. He looks tough to lots of people.”

FILE - A new barrier is built along the Texas-Mexico border near downtown El Paso, Jan. 22, 2019.
A new barrier is built along the Texas-Mexico border near downtown El Paso, Jan. 22, 2019. VOA
 

Trump centered much of his 2016 presidential campaign on a vow to build the wall and make Mexico pay for it. After he was elected, he said he never meant that Mexico would write a check for a wall, but that the money would come from the benefits from a new North American trade deal.

Also Read: Bernie Sanders Joins 2020 Presidential Election’s Marathon

Mexican leaders have said under no circumstances would they pay for a border wall. Trump has since shifted the focus on winning congressional funding. (VOA)