China to Continue Suspension of Auto Tariffs

China will continue to suspend tariffs on U.S.-made cars and auto parts past April 1, according to a notice from China’s State Council and a report from Reuters. In December, China originally announced it was suspending additional 25 percent tariffs on U.S. vehicles and parts as a show of good faith as the two countries negotiated a trade deal. The tariff suspension was scheduled to end April 1, but China announced on March 31 that the country would be upholding the suspension to “create a good atmosphere for the ongoing trade negotiations between both sides,” according to Reuters. China’s State Council said it will announce at a later date when the extension will expire.

As part of the suspension, China will not impose the additional 25 percent tariff on 144 U.S.-made car and auto part tariff lines and will suspend an additional 5 percent tariff on 67 other imported U.S. auto part tariff lines, according to a report from United Press International. A 15 percent tariff on auto imports will remain in place, UPI said. “We hope the U.S. can work together with China, accelerate negotiations and make concrete efforts towards the goal of terminating trade tensions,” China’s State Council said, according to Reuters.

Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer visited Beijing in late March and had “constructive trade talks,” Mnuchin said in a March 29 tweet. China’s Vice Premier Liu He is expected to visit Washington during the first week of April to continue negotiations.