China will temporarily suspend additional 25 percent tariffs on U.S.-made vehicles and auto parts starting Jan. 1, 2019, the finance ministry said on Friday, following a truce in a trade war between the world’s two largest economies.
The Ministry of Finance, in a statement on its website, also stated it hopes China and the United States can accelerate negotiations to eliminate all additional tariffs on each other’s goods as it decreases tariffs from 40 percent to the 15 percent level that was imposed before the current trade battle began. The suspension is going to remain for three months.
U.S. President Donald Trump welcomed the announcement.
“China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes,” Trump wrote in a tweet. “U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!”