Hyperdrive
China Makes Massive Cut to Car Tariffs After Truce With Trump
- Tariff reduced to 15% from 25%, boosting automaker shares
- Expected shift comes after truce in the U.S.-China trade war
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China will cut the import duty on passenger cars to 15 percent, further opening up a market that’s been a chief target of the U.S. in its trade fight with the world’s second-largest economy.
The Finance Ministry said Tuesday the levy will be lowered effective July 1 from the current 25 percent that has been in place for more than a decade, boosting shares of automakers from India to Europe. Bloomberg News reported last month that China was weighing proposals to reduce the car import levy to 10 percent or 15 percent.