China Cuts Tariffs On Imported Cars From 25% To 15%

China’s Finance Ministry announced today that import tariffs will be cut to 15% from as much as 25%, whereas taxes on certain automotive parts would fall to just 6%, starting July 1st.

The decision comes a few days after a truce between U.S. President Donald Trump and Chinese officials, as the two countries try to defuse tensions and avert an all-out trade war that could damage the entire global economy.

The move should open up the world’s largest car market to multiple global brands, especially with the average tax on qualifying vehicles falling to 13.8%. Meanwhile, some of the parts that will have their import duties lowered include bumpers, doors and seat belts.

Among the automakers expected to benefit from these cuts are premium brands such as BMW, Mercedes-Benz and Porsche, stated Bill Russo, founder of Shanghai-based consultancy Automobility. At the same time, gains for large U.S. brands like General Motors and Ford will likely be more limited since most of the products they sell in China are being manufactured there.

Aside from the lower tariffs, the Chinese government has also promised to remove restrictions on foreign automakers that may want to build their vehicles in the People’s Republic, as reported by CNN.

“Chinese customers will have a chance to enjoy an even optimized price and pursue more personalized options when buying a car,” said Porsche in an official statement.

Meanwhile, tension over a potential trade war between China and the United States has subsided following talks between Chinese Vice Premier Liu He, U.S. Treasury Secretary Steve Mnuchin and Commerce Secretary Wilbur Ross. The talks resulted in China exploring the possibility of purchasing more agricultural and energy products from the U.S, thus easing the trade deficit.

  • klowik

    Not many Chinese like US branded cars, most Chinese like Japanese and German cars. Reducing tariff or no tariff will not make much differences.

    • smartacus

      They certainly like Buick and Cadillac :p

    • brn

      klowik, where do you get your information?

      a. If they care so much about reliability, why are European brands popular?
      b. As others have pointed out, Buick is very popular in China and I’m pretty sure it’s an American brand.
      c. China and Japan hate each other. They hate each other’s people.
      d. American auto reliability is on par with Japanese.
      e. Chinese cars have a history of reliability?

      • klowik

        German brands is a status symbol to Chinese. It’s only one or two American brands is popular but what I meant is majority Chinese like Japanese and German brands. It’s not that Chinese made cars are more reliable, Chinese made cars are relatively priced cheaper and affordable locally than other foreign brands and only for those who cannot afford foreign brands.

  • Patrick

    MAGA! MAGA!!!!!

  • LeStori

    The tarrif might be lowered, but I am sure their will be other impediments that wil restrict sales.

  • LeStori

    Chinese seem to spend their money on prestige items that are visable . A Mercedes car for example and an el cheapo washing machine. They would buy an American car if you could not see it…

  • smartacus

    i know right?
    just say it
    🙂

  • smartacus

    You mean, Mueller can’t go away because it’s either this
    or jail for not investigating Russians colluding with Hillary.

    China would face riots of Hundreds of Millions of workers
    if USA decided to get those jobs back from China!

  • smartacus

    You lost because Her Hillariousness
    stole Bernie’s Delegates.
    She ruined everything.

  • smartacus

    Your observable reality is
    just a tool of the patriarchy
    used to hurt her feelings 🙂

  • Craig

    danno – I couldn’t agree more.

  • Randy Terpstra

    Why are running a story about cutting tariffs on imported cars and yet post a picture of a Chinese domestic car (China only Chevrolet Cavalier)?

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