Automakers' shares rose on Tuesday following a report that China could move to cut tariffs on American-made cars, a step which was forecast by U.S. President Donald Trump after a meeting with China's president in Argentina.
China is moving to cut import tariffs on American-made cars to 15 percent from the current 40 percent, Bloomberg reported on Tuesday citing people familiar with the matter.
Shares of U.S. automakers including General Motors Co and Ford Motor Co rose about 2 percent in premarket trading on hopes that the move could revitalize sales that took a hit when China ramped up levies on U.S.-made cars.
A proposal to reduce tariffs on cars made in the U.S. to 15 percent has been submitted to China's Cabinet to be reviewed in the coming days, according to the report.
The news would also be beneficial for Tesla Inc that has been hit hard by increased tariffs on the electric cars it exports to China.
The U.S. firm, led by billionaire Elon Musk, has said it will cut prices to make its cars "More affordable" and absorb more of the hit from the tariffs.
"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%," Trump had tweeted last week.
https://www.reuters.com/article/us-usa-trade-china-autos/china-moves-on-us-car-tariff-cut-bloomberg-idUSKBN1OA1AC
China is moving to cut import tariffs on American-made cars to 15 percent from the current 40 percent, Bloomberg reported on Tuesday citing people familiar with the matter.
Shares of U.S. automakers including General Motors Co and Ford Motor Co rose about 2 percent in premarket trading on hopes that the move could revitalize sales that took a hit when China ramped up levies on U.S.-made cars.
A proposal to reduce tariffs on cars made in the U.S. to 15 percent has been submitted to China's Cabinet to be reviewed in the coming days, according to the report.
The news would also be beneficial for Tesla Inc that has been hit hard by increased tariffs on the electric cars it exports to China.
The U.S. firm, led by billionaire Elon Musk, has said it will cut prices to make its cars "More affordable" and absorb more of the hit from the tariffs.
"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%," Trump had tweeted last week.
https://www.reuters.com/article/us-usa-trade-china-autos/china-moves-on-us-car-tariff-cut-bloomberg-idUSKBN1OA1AC
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